NEW DELHI: To increase transparency and attract private investment in urban infrastructure, Comptroller and Auditor General Sanjay Murthy on Saturday said the federal auditor is ready to assist states in certifying their municipal accounts. Such certifications add credibility and value, encouraging private players to invest in urban projects, he added.
The CAG will soon highlight best practices and models that municipalities can adopt, and if they adopt them, there will not be any financial audit observations , Murthy said. However, he said such an assurance would only be possible if municipal accounts are properly maintained and revenue sources clearly tracked.
Transparent and reliable financial systems are essential to attracting serious bidders and funding for urban projects, Murthy said at an online event organised by think-tank Janaagraha to commemorate the 32nd anniversary of the 74th Constitutional Amendment , which granted constitutional status to urban local bodies.
The announcement to certify accounts of municipalities comes ahead of the Centre’s anticipated roll-out of the Rs 1 lakh crore Urban Challenge Fund , aimed at supporting large-scale projects through public-private partnerships . The housing and urban affairs ministry is finalising the framework for this, first announced in the Budget.
On greater opportunities for municipal bodies with the Centre offering the Urban Challenge Fund, he said, “We have a greater role to play in ensuring the transparency of accounts that urban local bodies do.”
“Therefore, we have envisaged or embarking on a initiative to ensure that any state govt which wants the assistance of the CAG in certification of their accounts, we will be open to work with the them to ensure that we provide this service to them to ensure the larger goal of getting investments in the urban local bodies based on certification done by the CAG, which adds greater value,” he said.
Murthy also highlighted persistent challenges faced by even large municipal bodies, such as the lack of robust project reports, a key requirement for private funding. To address this, he said the CAG is planning to showcase successful models and best practices for municipalities to adopt. “Reinventing the wheel wastes time,” he said. “If municipalities implement proven models, we can assure them that there will be no audit objections,” the CAG said.
The CAG will soon highlight best practices and models that municipalities can adopt, and if they adopt them, there will not be any financial audit observations , Murthy said. However, he said such an assurance would only be possible if municipal accounts are properly maintained and revenue sources clearly tracked.
Transparent and reliable financial systems are essential to attracting serious bidders and funding for urban projects, Murthy said at an online event organised by think-tank Janaagraha to commemorate the 32nd anniversary of the 74th Constitutional Amendment , which granted constitutional status to urban local bodies.
The announcement to certify accounts of municipalities comes ahead of the Centre’s anticipated roll-out of the Rs 1 lakh crore Urban Challenge Fund , aimed at supporting large-scale projects through public-private partnerships . The housing and urban affairs ministry is finalising the framework for this, first announced in the Budget.
On greater opportunities for municipal bodies with the Centre offering the Urban Challenge Fund, he said, “We have a greater role to play in ensuring the transparency of accounts that urban local bodies do.”
“Therefore, we have envisaged or embarking on a initiative to ensure that any state govt which wants the assistance of the CAG in certification of their accounts, we will be open to work with the them to ensure that we provide this service to them to ensure the larger goal of getting investments in the urban local bodies based on certification done by the CAG, which adds greater value,” he said.
Murthy also highlighted persistent challenges faced by even large municipal bodies, such as the lack of robust project reports, a key requirement for private funding. To address this, he said the CAG is planning to showcase successful models and best practices for municipalities to adopt. “Reinventing the wheel wastes time,” he said. “If municipalities implement proven models, we can assure them that there will be no audit objections,” the CAG said.
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