New Delhi: The Comptroller and Auditor General (CAG) of India has directed all states to adopt a uniform structure for classifying government expenditure by FY 2027–28. The move aims to overhaul the country’s public finance architecture, ending decades of inconsistency in the way spending is recorded across the federal system, according to Jayant Sinha, deputy CAG (Government Accounts).

The decision, notified to the Union and state governments on 11 November, brings uniformity to the Object Heads of expenditure—the most detailed level of the accounting hierarchy that classifies how each rupee of government expenditure is categorised. For years, states recorded this expenditure head in different ways, making comparisons difficult, delaying data analysis, and reducing the accuracy of budget

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