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CAG to start natural resources accounting

CAG to start natural resources accounting

Quantum of natural resources available in mines, expenditure incurred for its extraction, and whether the mines are profitable or not will be audited by the CAG.

The assets account will give information about the total mineral resources of a state, its yearly extraction, the estimated market value, and the actual revenue earned. The assets account will give information about the total mineral resources of a state, its yearly extraction, the estimated market value, and the actual revenue earned.

 

The Comptroller and Auditor General (CAG) of India on Monday said it will start accounting of natural resources such as mines and help state governments so that real-time audit of local bodies becomes possible.

This was stated by CAG Girish Chandra Murmu while inaugurating the new office building for the Principal Accountant General (Audit) here.

We are in the process of conceptualizing Natural Resources Accounting (NRA) which would improve the accountability of the executive. Quantum of natural resources available in mines, expenditure incurred for its extraction, and whether the mines are profitable or not will be audited by the CAG, Murmu told reporters.

He said under the NRA, the assets account will give information about the total mineral resources of a state, its yearly extraction, the estimated market value, and the actual revenue earned.

The NRA reports will also help in proper management of the natural resources and reduce environmental damages due to their exploitation, Murmu said.

Stating that the nation is looking forward to Sustainable Development Goals to make life better for future generations, Murmu said, "We are proposing District Centric Audits to assess the growth in all sectors"

States now conduct audits of local bodies, Murmu said adding that the CAG will extend all cooperation to them as a result of which real-time audit of local bodies will be possible.

Huge funds are given to these local bodies but very little input is available on how the expenditures are made. The plan is to strengthen audits of local bodies," he said.

He emphasised that the CAG will not directly audit accounts of local bodies.