Strengthening Public Finance, Accountability & Governance
Public financial management is central to the growth of an economy as it is essential to deliver sustainable and high quality public services. In India, public financial management reforms have evolved over decades, however, the fundamental changes are yet to be achieved.
Since the quality of financial statements impacts the quality of various finance related decisions, financial reporting is considered as vital ingredient of public financial management. Improved financial reporting is also important from the accountability perspective.
ICAI's Initiative for Public Finance Management
ICAI keeping its mission and vision in mind has constituted the Public and Government Financial Management Committee (PGFMC) which strives to assist Central & State Governments and Local Bodies in successful implementation of the accounting reforms and public finance management.
This is an initiative of ICAI to meet its social obligations by providing professional services of CAs beyond corporate sector and to the public at large, by being true to its role of being a partner in nation building.
The Committee primarily focuses on capacity building of the finance officials of various tiers of Government in India by various means such as organizing workshops, developing relevant e-training modules, etc. apart from formulating Accounting Standards for Local Bodies (ASLBs).
Mission of PGFMC
Mission of PGFMC is to assist Central & State Governments and Local Bodies in successful implementation of the accounting reforms and public finance management.
Vision of PGFMC
To approach decision makers and stakeholders of Government Accounting and Public Financial Management to consider adopting and implementing standards in Government Accounting, especially for local bodies for accountability and transparency.
The Committee also focuses on capacity building of the finance officials of various tiers of Government in India and other extended entities like PSUs, autonomous bodies etc. by various means such as workshops, relevant e-training modules, Webinars and Training Programmes.
Creating awareness about the existing Government Accounting and Public Financial Management mechanism amongst CAs.
Terms of Reference
Terms of Reference of the Public & Government Financial Management Committee (PGFMC)
To conceive of and suggest areas in which Accounting Standards for Local Bodies need to be developed and formulate them.
To examine how far International Public Sector Accounting Standards prepared by the International Public Sector Accounting Standards Board can be integrated into national Accounting Standards for Local Bodies.
To review, at regular intervals, the Accounting Standards for Local Bodies from the point of view of acceptance or changed conditions, and revise the same if necessary.
To provide, from time to time, interpretations and guidance on Accounting Standards for Local Bodies.
To enable creation of a supportive environment for implementation of Accounting Standards for Local Bodies and respond to issues arising therefrom.
To formulate comments on the drafts of accounting standards for governmental bodies issued by various authorities.
To provide support to relevant authorities, Ministries, Government Departments and regulators in financial reporting, guidance material, asset registers, budgeting, costing, internal control and audit.
To provide thought-leadership and technical support to the Government on emerging areas in relation to their application and governance in the public sector.
To review, analyze, assist, recommend and suggest measures to Central, State & Local Government in policy formulation, assessment, planning and execution in public finance.
To collaborate with relevant authorities, Ministries, Government Departments, Local Bodies and autonomous organisations for efficient use of public funds and improved accounting systems.
To provide awareness of Public Finance, Government Accounting & Accounting Standards for Local Bodies to society and stakeholders.
Enhancing accountability and transparency in public service delivery mechanism.
To bring out newsletters, publications and other useful inputs in contemporary issues related to public finance and accounting standards for Local Bodies.
To suggest checks and balances for monitoring periodical review and audit of end use of Government and public funds.
To assist in developing software solutions and AI-enabled technology tools for accounting, auditing and financial management.
To increase the role of ICAI and its members in Financial Inclusion initiatives of the Government.
To develop papers for national and international journals on topics related to Public Finance and Government Accounting.
To carry out such other work relating to Public Finance, Government Accounting and related aspects as may be entrusted by the Council.