Assessment of the Public Finance Management and Accountability systems of the Municipal Corporation of Gurugram
- Sushant Vasishta, Debdulal Thakur
- Jan 2018
- Symboisis School of Economics
- India
Over the past decade, the role of an effective public financial management (PFM) system to achieve an improved service delivery mechanism, strategic planning and fiscal prudence through effective policy making is getting increasing attention at the third tier of government in India. A few state governments over the past decade have undertaken public financial management and accountability (PFMA) reforms, but the pace of reform has been slow. Various studies and government committees have recognized the gaps that need to be strengthened in order to have a strong institutional framework for PFMA reform and to improve government’s efficiency in spending and revenue generation. The urban local bodies in growing tier two cities have a crucial role to play in determining India’s growth story for the near future. Hence, it is essential that the local bodies in emerging cities such as Gurugram introduce reforms to effectively manage their finances and ensure that its citizens enjoy a better quality of life.
This paper examines the PFMA reform strategies of the Municipal Corporation of Gurugram (MCG) and uses indicators provided under the Public Expenditure and Fiscal Accountability (PEFA) framework to rate the municipal body based on the various indicators. The paper also provides policy recommendations to the municipal body to ensure that PFMA reforms in the MCG are carried out efficiently. The city of Gurugram was chosen for this study due to the growing importance of the city and its emergence as a major financial hub over the past decade.
