Question

Who do you think benefits from more accountability and control in government accounting?

Answer 1

Government accounting is one of the branches of accounting, which is operated by government departments and offices to collect, record, classify, summarize and interpret the financial transactions relating to the revenue and expenses of government departments.

The purpose of government accounting is to evaluate whether the public funds are utilised for welfare and maintenance of general public. Government accounting keeps a check on flow of funds paid by public in the form of taxes. To achieve this purpose, more accountability and control is required.

Benifits from more accountability and control in Government accounting are -

1. It leads to better monitoring of compliance with laws and regulations, whether government offices are working according to the applicable laws. And if there is non compliance, whether the same is rectified within the reasonable time.

2. It ensures transparency of utilisation of public funds, whether the funds are expended as per the budget and for required purpose. And no officer is benifited from public funds.

3. It leads to monitoring of economic performance of Government, with regards to debts and liabilities. Whether the funds are sufficient to repay debts , and liabilities, or if there is deficit condition.

4. It ensures that Government assets are safeguarded and are not misused by any Government officer.

5. It helps to know about efficiency and effectiveness of Government related operations, whether the Government departments are accomplishing their objectives within the reasonable time with the help of available resources.

6. It ensures that the subsidies received by Govenrnment departments are utilised for the required purpose and the benifit is flowing to deprived sections of the society.