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Comptroller and Auditor General (CAG) K. Sanjay Murthy met with the 16th Finance Commission, led by Chairperson Arvind Panagariya, in Bhopal.
The consultation focused on Union and State finances, local bodies, and Public Sector Enterprises (PSEs).
Audit Findings and Fiscal Challenges
CAG shared audit findings on Union and State sectors, highlighting gaps between expenditure and non-debt receipts.
Key issues: decline in State Own Tax Revenue (SOTR) buoyancy and varying levels of SOTR and Non-Tax Revenue across states.
Emphasis on meeting Fiscal Responsibility and Budget Management (FRBM) Act targets and regular reporting of off-budget borrowings.
Technology and Fiscal Performance
Areas like stamp duty, registration fees, and State excise collections have potential for improved fiscal performance.
Recommendations include updating market value guidelines, classifying property types, and adopting technology like sensor-based systems and QR codes to minimize revenue leakages.
GST Reforms and Local Body Recommendations
Proposed reforms for GST to widen the tax base, improve transparency, and integrate unregistered service providers through automated systems.
Suggested harmonization of local body accounts with Central and State accounts in top 100 cities and adoption of Integrated Financial Management System (IFMS) for improved fund transfers and accounting practices.
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