C R Sundaramurti Committee recommended Overhaul of Government Accounting Norms

Government-appointed C R Sundaramurti Committee submitted its report to finance minister Pranab Mukherjee. The report suggested a complete overhaul of government accounting norms in order to enforce transparency and better monitor public spending.

The proposed accounting classification structure will provide a foundation for a more robust public financial management which could be used for enforcing more transparency and effectiveness of Public delivery channels of the government.

The accounting classification of receipts and disbursements is prescribed under the Constitution and is maintained by the Controller General of Accounts (CGA)on the advice of the Comptroller and Auditor General of India (CAG).

Recommendations

The committee in its report recommended rationalisation and reorganisation of the existing account classification of list of major and minor heads of accounts (LMMHA) of centre and states. The panel also proposed a multidimensional classification framework which has seven mutually exclusive segments with their own individual hierarchical structures.

The revised accounting classification codes which are being perceived as a milestone in the area of accounting reforms were proposed to be implemented with effect from financial year 2013-2014. The proposed classification structure provides for capturing expenditure on special thrust area of government policy objectives such as development of women, schedule castes, schedule tribes, below poverty line population.

The Committee is of the opinion that the recommendations/suggestions framed by it would help  in the effective management tools. It would help national and sub-national governments for better planning, allocation and application of resources, and more effective monitoring of public spending.

The panel has also carried out standardisation of coding of all such entities which are recipient of public fund, as channels of public delivery. The measure is likely to facilitate tracking of flow of funds under a government programme or scheme from one level of governance to another level of administrative entities.