The revelation in Parliament that not a single Panchayat in Jammu & Kashmir and Ladakh has conducted an online audit for the financial year 2023-24 is not just a bureaucratic lapse-it is a direct blow to the very foundation of grassroots governance. This is particularly alarming given that the Union Government’s AuditOnline platform has been in place since April 2020, successfully facilitating lakhs of audits across the country to ensure transparency in Panchayat finances. In a year when 2.45 lakh audit plans were created and 2.39 lakh reports generated nationwide, the complete absence of such activity in these two Union Territories raises serious questions. With 4,291 Panchayats in J&K and 193 in Ladakh, the fact that not even one audit plan was initiated is indefensible – especially when both UTs claim 100% computer saturation in Panchayats and have received substantial funding under the Rashtriya Gram Swaraj Abhiyan. The infrastructure exists, the technology is in place, and the funds have flowed. The only missing element is administrative will and accountability.
Auditing is not a mere procedural formality; it is the bedrock of financial integrity. Panchayats receive hundreds of crores in grants annually under various Central and State schemes. Without rigorous audits, the risk of mismanagement, misuse, or even misappropriation of these funds increases exponentially. The audit process not only ensures compliance with CAG standards but also strengthens public trust in local governance by acting as a critical check-and-balance mechanism. This dereliction stands in stark contrast to the rest of the country, where most Panchayats have aligned with the national transparency framework. The non-compliance in J&K and Ladakh, therefore, cannot be brushed aside as an oversight – it reflects a deeper governance gap that must be addressed immediately.
Responsibility should be fixed at both the administrative and elected representative levels. Grassroots democracy thrives on accountability. For the Panchayati Raj system to function as envisioned-empowering communities and enabling effective local development-transparency in financial management is non-negotiable. The absence of audits in J&K and Ladakh is a warning sign. If left unchecked, it risks eroding both the credibility of the institutions and the faith of the people they serve.
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