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Report of the Committee constituted for Harmonization of Urban Local Bodies Accounts with the Centre and the State Accounts

The Ministry of Housing and Urban Affairs constituted a Committee for recommending a roadmap and methodology for integration and harmonisation of Municipal accounts with State/Central level accounts. Being a very vast and diverse area, the Committee examined the representative sample of five States- Odisha, Uttar Pradesh, Gujarat, Karnataka, and Tripura - to study the nuances of ULB accounting in these States, and accordingly suggested a way forward which is implementable. On a very technical area of carving out cash-based components from Accrual based accounts, the committee has gone into transactional level analysis to develop a Standard cash-based statement for the purpose of horizontal aggregation and vertical consolidation with State/ Centre keeping in mind the overall objective of the 15th Finance Commission's recommendations on ULB Accounting.