Law to strengthen local fund audit likely

By Our Special Correspondent

HYDERABAD, APRIL 7. Comprehensive legislation will be brought in to strengthen the local fund audit system ``as auditing of accounts in the municipalities is in an awful state'', said the Minister for Finance, Mr. Yanamala Ramakrishnudu. Addressing a meeting of TDP mayors, deputy mayors and municipal chairpersons at NTR Bhavan on Saturday, the Minister expressed concern over the poor maintenance of accounts by the civic bodies.

It has been decided to release funds only on the basis of submission of utilisation certificates and accounts of expenditure and revenue, the Minister told the presiding officers of the civic bodies. He sought to drive home the message that the Government was not prepared to brook the financial indiscipline any more. Mr. Ramakrishnudu said as many as 753 audit reports were pending. In some cases, the audit reports had been pending since 1960. The audit of municipalities was very poor and it was a very dangerous trend. The Government had, therefore, issued audit rules and the backlog must be cleared at any cost. It was also decided to run training classes for the accounts officers.

A staggering Rs. 222 crores was involved in 70117 audit objections. The local fund audit system was required to be strengthened and a comprehensive law proposed to be brought in, he explained. All the local fund audit reports would be presented to the State Assembly, he said.

The Finance Minister said the plan and non-plan allocations for municipalities for 2001-2002 was hiked to Rs. 799 crores from Rs. 406 crores of last year. Fifty per cent of the total outlay would be released immediately and the remaining after the submission of accounts. Mr. Ramakrishnudu said the civic bodies should strive to improve their resources as they cannot eternally depend on the Government to meet salaries and establishment expenditure. Tax collection by these institutions was over 45 to 50 per cent.

The Municipal Administration Minister, Mr. N. Mohd Farooq, who presided, regretted that the municipalities were not in a position to contribute their share of 30 per cent to the HUDCO- sponsored drinking water schemes. The Chief Minister, Mr. N. Chandrababu Naidu, therefore arranged Rs. 110 crores.

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