Government Eyes Cost Audits for Subsidy Sectors: Boosting Accountability and Efficiency

The government is contemplating expanding cost audit regulations to the infrastructure sector and areas receiving subsidies to enhance accountability and optimal use of public funds, says ICMAI Vice President. Efforts include training professionals in emerging financial practices and updating curricula to embrace technologies like AI and machine learning.

The government is taking strides towards expanding cost audit regulations to encompass the infrastructure sector and other subsidy-receiving areas, according to CMA Manoj Kumar Anand, Vice President of the Institute of Cost Accountants of India (ICMAI). This move aims to bolster accountability and the prudent usage of public funds.

Speaking at an event marking the release of ICMAI's latest handbooks on Expected Credit Loss (ECL) and bank loan restructuring, Anand elaborated on the pivotal role of cost audits in assessing resource efficiency and expenditure optimization. He emphasized ICMAI's support for public sector enterprises in achieving cost efficiency through various boards and collaborations with the Standing Conference of Public Enterprises (SCOPE).

Addressing challenges like limited budgets and rapid technological shifts, Anand highlighted the need for a balance between tech adoption and employment opportunities in India. Meanwhile, ICMAI President CMA Chittaranjan Chattopadhyay announced new initiatives to help banks, MSMEs, and stakeholders understand ECL and to update ICMAI's curriculum to incorporate AI and machine learning.