Cabinet Approves Draft of Local Audit Bill, 2026,
Chandigarh: The Haryana Cabinet, which met under the Chairmanship of Chief Minister, Nayab Singh Saini here today, approved the draft Haryana Local Audit Bill, 2026. The proposed Bill seeks to establish an effective and efficient audit framework for all local authorities and other authorities, bodies, institutions and funds in the State, besides providing for matters connected therewith or incidental thereto.
The Bill is being sought to be enacted to put in place a more effective and efficient audit framework and to enable better oversight of expenditure of local funds. The primary objective of enacting a dedicated Local Audit Department Act is to provide a robust statutory framework that empowers the Local Audit Department, Haryana, to conduct independent, timely, and effective audits of Local Bodies (Panchayati Raj Institutions and Urban Local Bodies) and other Local Fund Institutions. It is required for strong legal powers to compel the production of records and enforce accountability to the Auditors. It would help in developing strict legal mechanisms to ensure local authorities facilitate the audit mechanism and to do that within a fixed timeline.
The proposed Bill seeks to legally empower the Director of Local Audit to issue surcharge notices directly to persons/employees responsible for financial irregularities. It also mandates statutory timelines for submitting annual audit reports to the State Legislature, ensuring transparency.
