Public finance revolves around complex issues of revenue and expenditures made by government. It is said that the primary purpose of the governments is to meet the collective needs of society. India is a developing country facing a number of challenges in various areas of societal needs such as in the areas of healthcare, education, sanitation, inclusive growth and so on. Our government uses taxation, borrowings and other methods to raise finance and use it for public good such as for health, education, development of physical infrastructure, defence, policing and other welfare programmes. In recent past sale of natural resources and sale of investments has become crucial source of public finance. The recent sale of air-waves to telecom companies have brought sizable amount of money to the government and helped to reduce the deficits.
Prudent public finance policies coupled with effective financial management can help to accelerate the pace of economic growth and development as well as improve the general well being of the society. Accordingly, rendering of accounts, auditing, control and accountability, compliance with laid down procedures/rules/statutes, due process, good public and corporate governance become inevitable with a view of ensuring economical, efficient and effective operations and ensure the development of country.
As a part of institute’s endeavours to be an active partner in nation building, Committee on Public Finance & Government Accounting is providing assistance to Central and State Governments to develop effective mechanism for financial administration and management of public funds. The committee is also creating awareness on benefits and necessity of accounting reforms in Government for addressing the issues of transparency and good governance. I compliment the efforts taken by the committee.