Pioneering Financial Reform: Revamping Urban Governance through NMAM 2.0

A distinguished national workshop in the capital spotlighted efforts to bolster financial management in Urban Local Governments (ULGs) via the National Municipal Accounts Manual (NMAM) 2.0. Hosted by the International Centre for Audit of Local Governance alongside Janaagraha Centre for Citizenship and Democracy, the gathering marked a significant step towards revolutionizing municipal financial systems nationwide.

K Sanjay Murthy, Comptroller and Auditor General of India, presided over the event, underscoring the pivotal role of urban centers in national growth. He highlighted that while urban areas compose one-third of the population, they drive over two-thirds of the GDP—a proportion slated to reach 75 per cent by 2030. The workshop drew over 50 attendees, including senior figures from the CAG, Ministry of Housing, and World Bank, focusing on updating the NMAM to meet modern urbanization challenges.

The forum addressed that, despite 95 per cent ULGs publishing audited financial records, persistent issues with data timeliness and reliability hinder progress. Experts advocated for the NMAM 2.0's potential for digital-first standardization across cities, emphasizing state-level involvement and local initiative. CAG Murthy stressed practical strategies and a clear roadmap for implementation, urging a sincere approach to reform.