Latest news with #Janaagraha
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Business Standard
3 days ago
- Business
- Business Standard
CAG, Janaagraha sign MoU to strengthen ULG finances, digital audits
The five-year non-financial partnership aims to improve transparency, audit quality, and financial management in India's urban local governments through digital reforms Droupathi Mahalakshmi M Sharanya India's cities are urbanising at a rapid pace, yet urban local governments (ULGs) continue to struggle with financing and governance. According to PRS Legislative Research, India's Urban Local Bodies (ULBs) rank among the weakest globally in fiscal autonomy, with limited devolution of revenue powers. Varshith, public policy research lead at the Foundation for Democratic Reforms, noted: 'As local governments in India are a state subject, it is primarily the duty of the state to ensure that ULGs maintain accounts and conduct audits as prescribed by law. Most states have entrusted the audit responsibility to the Comptroller and Auditor General (CAG). However, the CAG is already burdened with Union and state-level audits. As a result, the financial scrutiny of ULGs is often neglected.' A strategic partnership for accountable cities To address this gap, the Janaagraha Centre for Citizenship and Democracy, a non-profit trust focused on transforming urban governance, and the Office of the CAG of India signed a five-year, non-financial Memorandum of Understanding (MoU) on April 8, 2025, in New Delhi. The MoU was signed by Subir Mallick, Deputy CAG (Local Government Audit), and Srikanth Viswanathan, CEO of Janaagraha. The partnership aims to strengthen accountability mechanisms and improve financial management in ULGs, thereby enhancing service delivery and enabling Indian cities to contribute more effectively to national development. Prabhat Kumar, Head of Public Finance at Janaagraha, said, 'This engagement aims to strengthen accountability systems and improve financial management in ULGs, which would ultimately result in improved governance and service delivery.' Reviving the municipal accounts manual A key initiative under this partnership is the development of a revised, digital-first National Municipal Accounts Manual (NMAM 2.0). 'Under this new partnership, the CAG will lead efforts to update the NMAM, making it natively digital,' said Kesavan Srinivasan, Senior Adviser at Janaagraha. 'With our experience from the CityFinance portal and public finance work across states, we are confident this effort will mark a paradigm shift in analysing ULG finances.' The collaboration seeks to combine CAG's constitutional authority and audit expertise with Janaagraha's experience in digital public finance management, policy reform, and civic engagement. The broader vision includes stronger audit systems, transparent data ecosystems, and actionable municipal financial insights. Towards systemic reform The 74th Constitutional Amendment Act (1992) gave municipalities constitutional status and empowered states to create systems for their operation and finances. Yet, the actual transfer of powers and resources remains slow, and financial management continues to be a critical bottleneck. Janaagraha's roadmap for city-systems reform calls for digital finance management, cadre and recruitment reforms, and stronger state capacity in municipal finance—all areas where the CAG's technical guidance is seen as essential. The road ahead The five-year collaboration marks a pivotal moment in addressing the chronic challenges of transparency and accountability in urban governance. By aligning their respective expertise, the CAG and Janaagraha aim to improve how Indian cities are funded, audited, and held accountable. However, experts remain cautious. 'While it is a welcome move that the CAG is taking ULG audits seriously, I feel the additional workload could compromise turnaround times. The CAG's human resource capacity should be enhanced to publish state audit reports faster,' said Varshith. Looking ahead, the success of this initiative will depend on timely audits, implementation of recommendations, and the translation of digital and structural reforms into measurable improvements in urban service delivery and citizen participation.
The Print
7 days ago
- Politics
- The Print
India's mayors have no power to lead cities. They need to be like CEOs
India's mayors are denied even basic executive functions. They cannot plan holistically, approve budgets, hire or supervise staff, or direct civic authorities. According to the CAG , urban local governments (ULGs) headed by mayors on average have no control over 75 per cent of the powers constitutionally devolved to them. Many mayors, as in Maharashtra, Karnataka, and Himachal Pradesh, hold office only for 12–30 months. State-appointed municipal commissioners often exercise real control in ULGs. This, coupled with the multiplicity of state-controlled agencies like development authorities, utility companies, and infrastructure SPVs, reduces mayors to mere figureheads. In most Indian cities, the average citizen is more likely to know the name of the municipal commissioner than that of the elected mayor. A 2022 survey by Janaagraha found that fewer than two out of 10 Bengaluru residents could name the last mayor. This is not surprising, given that elected mayors lack both the authority and visibility they deserve as leaders at the first mile. Their roles are dwarfed by higher-level leaders like MPs and MLAs. From President Droupadi Murmu, Jawaharlal Nehru, Subhas Chandra Bose, to Vallabhbhai Patel, several of India's well-known leaders began their public service careers as heads of municipal governments. The list also includes Chief Ministers like MK Stalin, K Chandrashekar Rao, Bansi Lal, BC Roy, Jagannath Mishra, Manohar Joshi, and D Devaraj Urs. Nearly 90 sitting MPs have served in local governments. Yet the office of the mayor remains weak and largely ceremonial, lacking the attention and authority needed to effectively lead cities in the 21st century. The weakened position of mayors leads to poor governance — marked by fragmented planning, duplication of efforts, delayed project implementation, resource wastage, and weak accountability. This ultimately diminishes the quality of life and ease of doing business in cities. Globally, empowered mayors and local governments deliver better outcomes. In developed countries like the US, UK, France, Germany, Japan, and South Korea, directly elected mayors lead city transformation. Developing nations such as Brazil, Mexico, Indonesia, Colombia, and even China have vested substantial authority in city leadership. India's vision of becoming a developed nation hinges on empowered urban leadership. Cities contribute over 65 per cent of GDP and house more than 30 per cent of the population. Reforms are urgently needed to position mayors as CEOs of cities with clear authority, drawing from Indian and global best practices. Also read: India is letting the AI revolution bypass the country. It may have to pay a heavy price Need for reforms First, we must adopt a cabinet form of government for cities, akin to those at the union and state levels. This includes five-year mayoral tenures and a Mayor-in-Council (MIC) system, where select councillors manage portfolios like finance, sanitation, transport, and health. India's largest cities, including New Delhi, Mumbai, and Bengaluru, have mayoral tenures of less than five years and outdated governance models. Meanwhile, states like Chhattisgarh and West Bengal follow the MIC system. Evaluating this alongside the directly elected mayor model in place in Madhya Pradesh, Odisha, and Jharkhand, can inform improvements to strengthen the office of mayor. Second, the mayor must have the highest executive authority in the city. Municipal commissioners should function like secretaries (just as the cabinet secretary at the union level and the chief secretary at the state level) — appointed by and reporting to the mayor, and accountable to the elected council. Parastatal agencies must come under mayoral supervision and council oversight to ensure democratic accountability. Third, loopholes in electoral processes must be tightened. Only 40 per cent of ULGs across the 17 states audited by the CAG had elected councils. This is largely due to the discretionary powers of state governments in ward delimitation and reservation. State Election Commissions, therefore, must be empowered to oversee the entire electoral process, including ward delimitation and reservation, and elections for indirectly elected mayors. Anti-defection laws for ULGs, such as those adopted by Kerala, Odisha, and Karnataka, may be suitably adapted to ensure stability in the position of mayor. Fourth, mayors and councils should be installed within 15 days of the declaration of election results. At present, delays may extend for months. In Karnataka, delays averaged 11 months for city corporations. To keep state executive excesses under check, the power to dissolve councils should rest with the legislature, not the state government. Any suspension or supersession must be limited to six months unless ratified by the state assembly, similar to the President's Rule imposition in states. Fifth, mayors and councillors shoulder significant responsibilities as first-mile elected leaders but receive a token honorarium of Rs 3,000 a month or less. Forty-six per cent of councillors in India are estimated to be women, and many belong to weaker sections of society. While a few states like Tamil Nadu and Maharashtra have increased monthly mayoral allowances to Rs 30,000, parity with MLAs and MPs — whose allowances range from Rs 1.5–2.5 lakh — is needed. Adequate financial support, trained staff, research capacity, and continuous training are essential to attract and retaining better talent for city leadership. National and state-level mayoral forums must be promoted for peer learning, as it's done in states like Kerala. Finally, vibrant citizen engagement through participatory budgeting and planning led by mayors and councillors must be embedded in urban governance. Ward committees, constitutionally mandated for larger cities, are mostly defunct. These, along with area sabhas, should be operationalised in all urban areas. Many of these reforms must be enshrined in the Constitution by overhauling the 74th Amendment (Part IX-A), shielding them from political interference. Others should be integrated into state laws and operational practice. Only empowered executive mayors will be able to lead the urban transformation essential to India's development goals. Santosh Nargund is Director, Policy Engagement, Janaagraha. He tweets @nargundsantosh1. Views are personal. (Edited by Ratan Priya)
Time of India
31-05-2025
- Business
- Time of India
Ready to assist states in certifying municipal accounts: CAG
File photo: Comptroller and Auditor General Sanjay Murthy 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.
