The Annual Financial Statement (AFS) of ABCD Municipality for the year 2023-24

Transparency and Accountability:

• The AFS provides a clear picture of the LSG's financial health. Citizens can see where their tax money is going (income) and how it's being spent (expenditure). This transparency fosters accountability of the LSG to the public.

Informed Decision Making:

• By analyzing the AFS, the LSG itself can make informed decisions about resource allocation. They can identify areas where spending is high or low, and adjust budgets accordingly to better serve the community's needs .

Public Participation:

• Availability of the AFS empowers citizens to participate in the budgetary process. They can understand the LSG's priorities and raise questions or suggestions during public forums.

Audit and Oversight:

• The AFS serves as the basis for audits by the Comptroller and Auditor General of India (CAG). This independent review ensures proper financial management and identifies any irregularities .

Funding and Grants:

• LSGs in Kerala often rely on grants from the state and central governments. A well-prepared AFS can strengthen their application for these funds by demonstrating financial responsibility.

Overall, the Annual Financial Statement is a vital document that promotes transparency, accountability, and informed decision-making within Kerala's Local Self Governments. It empowers citizens and strengthens the financial health of these local governing bodies.