CAG Red Flags Rajasthan’s Proposal to Change Treasury System

Last Update: February 14, 2023, 00:01 IST

Rajasthan Chief Minister Ashok Gehlot.  (File photo/ANI)

Rajasthan Chief Minister Ashok Gehlot. (File photo/ANI)

Citing media reports, it was noted that Rajasthan is considering scrapping the current treasury system and starting an independent pay and accounts office.

Against the backdrop of Rajasthan considering scrapping the existing treasury system of accounting, the Comptroller and Auditor General (CAG) has warned the state that the creation of a new mechanism would hamper the compilation, preparation and reporting of government accounts in the near future. Will come

In a strongly worded letter to the Rajasthan government, the CAG’s office said, “Any change in the existing scheme as per the Constitution and a parliamentary act in this regard would require prior approval of the President and consultation with the C&AG of India.”

The letter, written by deputy CAG KR Sriram, said it is “highly desirable” for the state government to re-evaluate the change in the treasury system and put it on hold until further consultations with the central government. “Any creation of PAO (Pay and Accounts Office) by a State will derail the time-tested treasury system where vast human and digital resources have been developed with the relevant treasury rules and its underlying system of checks and balances and the entire IT There is infrastructure connectivity. …”, said the letter to the Chief Secretary, Government of Rajasthan.

Citing media reports, it was noted that Rajasthan is considering scrapping the current treasury system and starting an independent pay and accounts office.

It cited constitutional provisions, which mandate that the CAG shall be responsible for compiling the accounts of each state from preliminary and subsidiary accounts provided to the audit and accounts offices.

“…to re-evaluate this entire gamut of changes in the treasury system and allied activities of accounts in the State of Rajasthan before introducing such drastic changes and hold it pending further consultation with this (CAG) office Stopping is highly desirable,” the letter said.

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