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LATEST NEWS UPDATES | What CAG's Nitpicking Over Kerala Worker Cess Says About the Problems With Purpose-Specific Taxes -Himanshu Upadhyaya

What CAG's Nitpicking Over Kerala Worker Cess Says About the Problems With Purpose-Specific Taxes -Himanshu Upadhyaya

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published Published on Jul 27, 2022   modified Modified on Jul 28, 2022

-TheWire.in

Why should the money collected through purpose-specific cesses be funneled into a state's consolidated fund?

On July 20, 2022, the Comptroller and Auditor General of India (CAG)’s report on Kerala’s finances for the fiscal year 2020-21 was tabled in the state assembly.

Amongst several other observations, this report has noted how funds being kept outside the ‘Consolidated Fund’ of the state. The context here is the manner in which Kerala treats cess receipts under the Building and Other Construction Workers’ Welfare Cess Act, 1996 (BOCW Cess Act).

The observations raise some pertinent questions around accounting principles and the national auditor’s role in enforcing accountability. However, when examined against the letter and spirit of the BOCW Cess Act, these comments give off an air of mere nitpicking.

Indeed, even as it engages in such technical nitpicking, a careful reading of the report makes it clear that the CAG has failed to ensure compliance by Kerala BOCW Board with regard to timely submission of its annual accounts for audit certification.

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TheWire.in, 27 July, 2022, https://thewire.in/government/what-cags-nitpicking-over-kerala-worker-cess-says-about-the-problems-with-purpose-specific-taxes


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