Lot of work pending on devolving powers to local bodies, says CAG

Set up by CAG, the Supreme Audit Institution (SAI) of India, iCAL is aimed at building capacity of local bodies of self governance and Murmu said the new institute is an example of India taking leadership of the Global South.

In certain western countries, local bodies (LBs) have emerged as powerful institutes of governance, said Murmu citing the example of the New York City Council and the office of the New York mayor. He, however, added that India has some catching up to do though 73rd and 74th Constitutional amendments came into force in 1993.

“In many countries, local bodies are important. In fact, in a city like New York, the mayor is the most important person after the governor…. However, despite the 73rd and 74th amendments in the Indian Constitution, a lot of work is pending in decentralising the subjects, departments of ministries,” Murmu said.

The 73rd and 74th amendments provide a legal framework for Panchayati Raj Institutions such as village, taluka and district panchayat, and urban local bodies (ULBs) such as municipalities and municipal corporations.

Murmu’s remarks come months after a CAG compendium — ‘Local Governance in India, Initiatives and Opportunities’ — published in February this year highlighted that state and central government grants constituted 96.66 per cent revenue of PRIs, 42.46 per cent revenue of ULBs in 2017-18.

“Due to the overdependence of the local bodies (particularly PRIs) on central and state government funds, they have remained delivery centres for central and state planned schemes rather than decentralised institutions for local planning,” the CAG commented on the “Background” section of the compendium.

“The basic concept of devolution of power and responsibilities to the local bodies is to ensure that they can function as institutions of local government and prepare plans and implement schemes for economic development and social justice. For doing so, having financial freedom is of prime importance. Also, the sources of external funding are important for a local body till it is able to internally generate all the funds required.”

Over 2.5 lakh panchayats and over 6,000 ULBs need to be strengthened by capacity building, accountability via proper auditing of their accounts and performance, he said, adding that iCAL will contribute to that goal.

“Certain developed countries in the West have established their own systems of local bodies which are doing well. But many countries in the West and other parts of the world don’t have that efficient system. As chair of the knowledge sharing and knowledge services committee of INTOSAI (International Organisation of Supreme Audit Institutions), the Supreme Audit Institution of India is taking the leadership of the Global South, and iCAL will go a long way in this respect,” Murmu said.

The iCAL will train representatives, employees and auditors of LBs of India as well as other countries of the world.

Murmu, who is also vice-chair of the UN Panel of External Auditors, said that the CAG is helping multiple countries in the Global South and some less developed countries in the West in their auditing operations. Underlining that SAI, India heads the Knowledge Sharing and Knowledge Services Committee of INTOSAI, Murmu said that iCAL will be a centre of excellence which will not only train auditors and offices of local bodies of India but of the world and will also function as a platform for sharing of knowledge and international best practices.

The iCAL will function out of the office building of principal accountant general in Rajkot, he said, adding that plans have been drawn to construct a separate building for conducting training class-rooms and lodging and boarding facilities.

The iCAL is the third international centre to be set up by CAG, the SAI of India.

When asked as to why CAG reports in Gujarat are tabled before the Assembly only on the last day of the House sessions, Murmu said, “All reports are important. We work hard to prepare them after collecting data, reviewing documents and holding discussions with concerned departments. They should be discussed. But as per provisions in our Constitution, we submit our reports to the President or Governor (of the concerned state). It is the prerogative of the President and Governor to table them in the Legislature. As an exception, tabling is delayed in some states whereas they are tabled on time in 98 to 99 per cent states.”