Transition to accrual accounting: Models and learnings for Urban Local Bodies

Summary

Many urban local bodies (ULBs) in India continue to use outdated cash-based accounting systems, hindering effective financial management and decision-making crucial for rapid urbanization. This report, a collaborative effort by NITI Aayog and ICAI, analyzes the transition experiences of 8 states and Cantonment Boards to accrual-based accounting, offering models and 15 recommendations to support other ULBs in adopting this comprehensive system. The initiative is currently in progress, with a goal to enhance financial governance across Indian cities as part of broader urban reform agendas.

Key Facts

Source Document

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