India considers expanding cost audits to infrastructure and subsidized sectors

The Indian government is considering an expansion of cost audit regulations to include the infrastructure sector and other industries that receive government subsidies. The move aims to improve accountability and ensure the efficient utilization of public funds.

Manoj Kumar Anand, Vice President of the Institute of Cost Accountants of India (ICMAI), stated that the government is positive about this expansion. He noted that cost audits are essential for assessing whether resources are being used effectively and whether expenditures are optimized.

ICMAI is currently working to support public sector enterprises (PSEs) in improving cost efficiency through various boards and engagement with the Standing Conference of Public Enterprises (SCOPE). Anand highlighted that while many PSEs already employ cost professionals in senior roles, challenges such as limited budgets and rapid technological changes persist.