Tuesday, 27 November 2012

GOVERNMENT EXPENDITURES- TIME FOR ACCOUNTABILITY?


The public limited listed companies in India are required by Clause 49 of listing agreement to show quarterly results so as to inform the intended users about the performance of the company. It also ensures that these listed companies are compliant with all the relevant statutes.

Today, India witnesses a lot of corruption. Every day, we have news on the same cropping up. But why is this happening? This is simply because there is no accountability for the same.  The blame game goes on. The issue is politicised and it brings the Indian Parliament to a halt. Is this what we want? Coal scam, 2G scam, Irrigation scam, land deals, food grains scam, CWG scam and the list just continues. Have we ever wondered where all the money has gone? These amounts are shown as expenditure in the yearly budget presented by GoI. But have these reached the real beneficiaries? No, it has not. A large chunk of money is eaten away by the corrupt bureaucrats.

What is the solution for us? How do we mitigate or stop this? Well Government, collects money from public in form of various types of taxes.  It’s the aam admi paying taxes. We would be very interested to know if the money collected from us is being invested for the development of country.

Government must come out with the quarterly figures of money spent by them on various activities providing full disclosure in terms of money invested, benefits derived from it and also stating that not even a single rupee has been mis-utilised.

This must be signed by Prime Minister, Finance minister and others connected with it, just like the way Directors, CFO sign the financial statement of the company. This process will ensure that money collected from public is not mis-utilised.

If these measures can be introduced in the Indian financial system, it will bring in more transparency and awareness to the Indian Public.

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