CAG and 16th Finance Commission hold consultation on public finance

Comptroller and Auditor General of India K. Sanjay Murthy on Wednesday held a meeting with the 16th Finance Commission, which was led by its Chairperson Arvind Panagariya, in Bhopal. The deliberations mainly focused on three key areas: Union and State finances, local bodies, and Public Sector Enterprises, among others,” said the supreme auditing body. The CAG chief shared various audit findings for the Union and States in different sectors, fiscal challenges and stress points, including the gap between expenditure and non-debt receipts for the Union and States combined, and key areas of concern including a decline in the State Own Tax Revenue buoyancy of States and varying levels of SOTR and Non-Tax Revenue of States. The CAG chief shared insights from performance audits across numerous urban local bodies and Panchayati Raj Institutions, pointing out issues such as incomplete devolution of functions, heavy dependence on Central and State grants, and low levels of own-source revenue. Among the recommendations were local body use of Integrated Financial Management System for onboarding the payment/fund transfer made by States to the urban/rural local bodies and streamlining accounting practices.