New Accounting system to be introduced

Centre is in the process of introducing a 'new accrual' system for government accounts, to bring in more transparency and accountablity, Vinod Rai, Comptroller and Auditor General of India, said today.    

A road map has been formulated and in a month or  six weeks time, all the states would be called for a discussion to finetune the process, Rai said at the first INKEL Forum of Excellence lecture on 'Stregthening Financial Management systems', here.

The roll out of the new system will be over in 3-5 years period, he said.    

A Government accounting advisory board at the national level has been formed with State and central government representatives.

"We are hoping one year from now the process will start", he said.

About 20 state governments have already evinced interest in the new system which will help in budget formulations. Successive governments will also become more accountable, he said.    

Switch over to the new system will also help in overcoming the assest-liablity mismatch. Citing an example, he said for the Rs 70,000 crore worth oil bonds issued by the government, there is no matching asset.   

"Globally India has arrived. There is no doubting it. Consistently India has been growing at 9 per cent plus. Others look at India with great deal of respect which was not there 15 years ago," he said.   

"During the last five to 6 months, though there has been a slowdown, we are still among the largest growing economies of the world," he said.    

India has inherant strengths to withstand shocks largely due to the huge human capital.Earlier, the country's 1.1 billion populace was considered as Non-Performing Assest (NPA), but now 54 per cent of the GDP is contributed by the services sector.