Daijiworld Media Network - Panaji

Panaji, May 25: Goa’s local self-governance audit system has come under serious scrutiny following a sharp collapse in audit report generation by village panchayats over the last two financial years.

Official data shows that only 13 of the State’s 191 panchayats generated audit reports in 2024–25, while no panchayat has produced any audit report in the recently concluded 2025–26 financial year. This marks a dramatic decline from 2023–24, when all 191 panchayats had fully complied and generated audit reports, ensuring complete statewide coverage.

The situation is even more concerning at the district level, with both North Goa and South Goa Zilla Panchayats failing to produce audit reports for the past three consecutive years. Records indicate that audit submission by the ZPs has remained completely nil during this period.

Officials pointed out that while full compliance was achieved just a year earlier, the system has since weakened significantly, raising concerns about financial monitoring and accountability in local governance institutions.

Audit reports are a key mechanism for ensuring transparency in panchayat administration. They verify financial records, assess the use of public funds, evaluate the implementation of development schemes, and detect irregularities or deviations in expenditure.
The auditing process is mandated under the Panchayati Raj framework and is also linked to accountability systems under centrally monitored platforms such as the AuditOnline system of the Union Ministry of Panchayati Raj.

These audits play a crucial role in tracking the utilisation of Finance Commission grants and ensuring corrective action where required.

Officials, however, maintained that efforts are underway to restore compliance. “Audit report preparation is in progress in the panchayats. Auditors have already been appointed,” sources said, indicating that steps are being taken to address the backlog.

The sharp fall in compliance has raised concerns among governance observers about oversight mechanisms and the effectiveness of financial accountability at the grassroots level in Goa.