Credibility of govt accounting

Are official revenue-expenditure records evaluated critically and exhaustively enough?

Accounting Fraud

Accountants and regulators would likely claim that this could not happen now

Jaimini Bhagwati
At a centennial event in the first week of December 2021, the Public Accounts Committee’s (PAC) hundred years of existence was commemorated in Parliament. The PAC’s crucial role in scrutinising the use of government funds was highlighted at this function. The Comptroller and Auditor General’s (CAG) reports on spending by India’s central and state governments are submitted to Parliament and are examined by the PAC. Currently, both central and state governments use cash flow accounting while private Indian companies have to necessarily follow accrual-based accounting standards. This article discusses ways to improve the PAC’s oversight.

The PAC is a parliamentary committee and customarily the leader of the largest opposition party in the Lok Sabha is the chairperson. The office of
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

First Published: Jan 26 2022 | 11:28 PM IST

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