Compliance Performance
Andhra Pradesh

Report No. 5 of 2015 - Compliance and Performance Audit on Local Bodies of Government of Andhra Pradesh

Date on which Report Tabled:
Fri 27 Mar, 2015
Date of sending the report to Government
Government Type
Local Body Types
Local Bodies
Sector Local Bodies


This Report of the Comptroller and Auditor General of India (CAG) relates to matters arising from performance audit of selected programmes of Panchayat Raj and Rural Development (PR&RD) and Municipal Administration and Urban Development (MA&UD) departments implemented with involvement of local bodies, and compliance audit of local bodies.
This Report also contains overview of finances and accounts of local bodies and observations on financial reporting.

Government of India (Gol) enacted the 73rd and 74th Amendments to the Constitution to empower local self governing institutions like the Panchayat Raj Institutions (PRIs)and Urban Local Bodies (ULBs). GoI further entrusted implementation of key socio economic developmental programmes to PRIs and ULBs.

States, in turn were required to entmst these local bodies with such powers, functions and responsibilities to enable them to function as institutions of self-governance and implement schemes for economic development and social justice including those enumerated in the Eleventh and Twelfth Schedules to the Constitution.

Accordingly, State Government enacted Andhra Pradesh Panchayat Raj (APPR) Act in 1994 repealing all the existing Acts, to establish a three-tier system at Village, Mandal and District levels. Further, Andhra Pradesh Municipal Corporations Act, 1994 was enacted to set up Municipal Corporations in the State and provisions of Hyderabad Municipal Corporation (HMC) Act, 1955 including the provisions relating to levy and collection of taxes or fees were extended to all other Municipal Corporations in the State. Municipalities are, however, governed by the Andhra Pradesh Municipalities Act, 1965.

As of 31 March 2014, there were 22,685 PRIs in Andhra Pradesh comprising 22 Zilla Praja Parishads (ZPPs), 1,096 Mandal Praja Parishads (MPPs) and 21,567 Gram Panchayats (GPs) and 179 ULBs comprising 19 Municipal Corporations, 108 Municipalities and 52 Nagar

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