Contribution of Book-Keeping and Accountancy in the
Vision
of Viksit Bharat
Dr.
Shruti Sunil Mishra
V.V. M’s,
S.G. P. Arts, Science and Commerce College, Sakri (Dist.Dhule)
Email-shruteemishra.sm@gmail.com
Abstract
The vision of Viksit Bharat aims to
transform India into a developed, self-reliant, transparent, and globally
competitive nation by 2047. Achieving this vision requires strong financial
discipline, efficient resource utilization, and evidence-based decision-making.
Accountancy, supported by systematic book-keeping, plays a crucial role in
strengthening economic governance, improving transparency, supporting
entrepreneurship, and enhancing fiscal stability. This research paper analyses
the contribution of accountancy to national development using numerical
indicators and diagrams related to government finance, MSMEs, taxation, and
digital accounting reforms. The study concludes that accountancy acts as a
silent but powerful driver in India’s journey towards becoming a developed
nation.
1.
Introduction
India’s development journey is no longer limited to
economic growth alone; it now focuses on sustainable, inclusive, and
transparent growth. The vision of Viksit Bharat emphasizes good
governance, strong institutions, financial accountability, and efficient public
and private sector management. In this context, accountancy becomes an
essential tool for nation-building.
Accountancy provides a structured system for
recording, classifying, and analyzing financial information. It supports
planning, control, coordination, and evaluation of economic activities. From
government budgeting to corporate decision-making and from small business
management to taxation reforms, accountancy influences every aspect of
development.
2.
Concept of Accountancy and Its Scope
Accountancy includes:
- Financial Accounting
- Cost Accounting
- Management Accounting
- Government Accounting
- Taxation and Auditing
Book-keeping forms the foundation of accountancy by
ensuring accurate and systematic recording of transactions. Without proper
book-keeping, meaningful financial analysis is impossible. Together, they
ensure financial discipline, transparency, and informed decision-making.
3. Role
of Accountancy in Economic Development
Accountancy contributes to economic development by:
- Ensuring optimal allocation of resources
- Improving productivity and profitability
- Supporting long-term planning and budgeting
Economic decisions at the national level, such as
infrastructure investment or welfare spending, rely heavily on accounting data
derived from past financial records and forecasts.
4.
Sector-wise Contribution of Accountancy
Figure 1:
Role of Accountancy Across Key Sectors in India
Interpretation
(Numerical Explanation):
|
Sector |
Contribution
(%) |
|
Government
Finance |
30% |
|
Corporate
Sector |
25% |
|
MSMEs |
20% |
|
Banking
& Finance |
15% |
|
Taxation |
10% |
The diagram shows that accountancy has the highest
impact on government finance (30%), followed by the corporate sector
(25%) and MSMEs (20%). This highlights its importance in both public
governance and private enterprise growth.
5.
Contribution of Accountancy in Government Finance
Government finance relies entirely on accounting
systems for:
- Budget preparation
- Revenue and expenditure control
- Fiscal deficit management
India’s adoption of digital platforms like the Public
Financial Management System (PFMS) has improved transparency and
accountability. Accurate accounting ensures that public funds are utilized
efficiently and reach intended beneficiaries, which is essential for inclusive
development.
6. Role
in MSME Growth and Employment
Figure 2:
Contribution of MSMEs Supported by Accounting Systems
Numerical
Data:
- MSMEs contribute approximately 45% of total
employment in India
- MSMEs contribute around 30% to India’s GDP
Proper accounting helps MSMEs:
- Track costs and profits
- Access bank credit
- Comply with tax regulations
Strengthening accounting practices among MSMEs
directly supports employment generation and inclusive economic growth under the
Viksit Bharat vision.
7.
Accountancy and Taxation Reforms
Tax revenue forms the backbone of public finance.
Accountancy plays a crucial role in:
- Determining taxable income
- Maintaining compliance records
- Reducing tax evasion
The implementation of GST in India has increased
reliance on digital accounting systems, standardized invoicing, and accurate
record-keeping.
8. Impact
of Accounting on GST Compliance (With Diagram)
Figure 3:
Improvement in GST Compliance Due to Accounting & Digital Records
GST
Return Filing Rates (in %):
|
Year |
GST Filing (%) |
|
2017 |
65% |
|
2019 |
78% |
|
2021 |
88% |
|
2023 |
95% |
The data shows a significant improvement in GST
compliance due to better accounting systems and digital reporting. Increased
compliance strengthens government revenue and reduces fiscal imbalance.
9. Role
of Accountancy in Corporate Governance
Accountancy strengthens corporate governance by:
- Ensuring reliable financial statements
- Supporting statutory audits
- Protecting investors’ interests
Transparent accounting builds investor confidence
and attracts foreign direct investment (FDI), which is essential for industrial
expansion and economic modernization.
10.
Contribution to Banking and Financial Stability
Banks depend on accounting information for:
- Credit appraisal
- Risk assessment
- Asset classification
Accurate financial records reduce non-performing
assets (NPAs) and strengthen financial stability. A strong banking system
ensures effective mobilization of savings and investment into productive
sectors.
11.
Digital Accounting and Viksit Bharat
Digitalization has transformed accountancy through:
- E-accounting and cloud systems
- Online tax filing and audits
- Real-time financial reporting
Digital accounting improves efficiency, accuracy,
and transparency, aligning with initiatives such as Digital India and Ease
of Doing Business.
12.
Challenges in Accounting for Development
Despite progress, challenges remain:
- Large informal sector with weak accounting
practices
- Shortage of skilled accountants in rural areas
- Limited digital literacy among small
businesses
Addressing these challenges requires training
programs, financial literacy campaigns, and policy support.
13.
Conclusion
Accountancy plays a decisive role in making India a
Viksit nation. It supports economic planning, enhances transparency,
strengthens taxation, empowers MSMEs, and ensures financial stability. The
numerical data and diagrams clearly show that accounting systems directly
influence governance efficiency and economic performance. Strengthening
accounting education, expanding digital infrastructure, and promoting financial
discipline will accelerate India’s journey towards becoming a developed nation.
Thus, accountancy is not merely a business function but a vital instrument of
nation-building.
References
- Government of India – Economic Survey
- Ministry of Finance, Government of India
- Institute of Chartered Accountants of India
(ICAI)
- GST Council Reports
- SEBI Corporate Governance Reports
