CAG asks Centre, states to follow uniform classification for recording expenses from FY28

The CAG has asked the Centre and all the states to start using standard categories for recording government spending, to make accounting and auditing uniform across the country, latest by fiscal year 2027-28.

- MPOST BUREAU

The CAG advisory seeks to do away with the wide variation among states in the operation of expenditure heads at the disaggregated level.

The matter had been engaging the attention of multiple stakeholders and was impacting inter-temporal and interstate comparison as well as those with the Union Government, Jayant Sinha, Deputy CAG (Government Accounts) and Chairperson (GASAB) has said.

The Comptroller and Auditor General of India (CAG) has notified a common list of heads of expenditure at the disaggregate level, commonly referred to as 'Object Heads' of expenditure.

This is being done as part of recent initiatives to strengthen public financial management in the country, Sinha said.