What is meant by XBRL reporting standard ? Does the adoption of XBRL by government of India ensure the effectiveness of government spending? Discuss (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
XBRL is an open source information reporting standard through the adoption of which you can cut government flab and more significantly, ensure the effectiveness of government spending.
Ensures effectiveness in government spending
· The elimination of red tape.
· Businesses saved money through a reduction in regulatory burden, while the government saved money by de-layering the bureaucracy engaged in regulatory oversight.
· The big value of the adoption of XBRL in India will stem from plugging the leakages in government spending.
· By moving from document based submission to data filings, which is what XBRL will entail, the government will simply tighten oversight.
· This makes it possible for the government to act speedily and expeditiously against those that are not spending the funds right.
In India, the Ministry of Corporate Affairs and the RBI have both adopted XBRL, though it is the RBI that has benefited the most.
· The benefits are seen in automation, cost saving, faster, more reliable and more accurate handling of data, improved analysis and in better quality of information and decision-making.
· All types of organisations can use XBRL to save costs and improve efficiency in handling business and financial information. Because XBRL is extensible and flexible, it can be adapted to a wide variety of different requirements.”
· The use of XBRL has made it expensive for banks to hide their NPAs. Without a doubt, the oversight of banks by the RBI has been greatly strengthened by the adoption of XBRL.
The time has come to consider mainstreaming XBRL across the entire government, across all departments, and across all ministries.
arsh 5 years
extensible business reporting language XBRL is a global framework facilitated by computer software which enables a company to digitally capture,read and store all the financial transactions taking place.currently in use by some developed and advanced economies xbrl india can consider it to reduce the government spending and for better financial planning.
1. reduces the paperwork,effort,manpower,time making auditing and budgeting task easy.
2. having accurate data in digital form makes it easy to make,compare and check the performance of the various schemes and programmes.this is in align with the government’s new motive of raising planning and investment standards.
3. correct and efficent data capturing reduces unnecessary regulations and red tapism.australia saved around 1 billion $ in 2016/17 by following the same.
4. as implementation of govt schemes includes various actors like NGO’s it increases the the responsibility of the actors to act and spend in lawful manner.
already in use by rbi and ministry of corporate affairs,xbrl should be promoted and adopted on the large scale by making it affordable for both private and public sector companies.this will also help to promote digitial india,lessening the leakages in govt spendings and the burden of non performing assets.
IAS Parliament 5 years
Good answer. Keep Writing.
Rohan Vidhte 5 years
plz review
IAS Parliament 5 years
Try to include few advantages of the reporting standard and explain how will increase the efficiency of Government spending. Keep Writing.
