Under the JNNURM, every civic body will have to function under the accrual system.

With the accrual system, every possession with the VMC will be accounted and will work under the double entry system.

"In October last year, the old accounting system was removed and the new balancesheets were made. This is going to help us to a great extent, especially when we approach banks and financial institutions for seeking loan for different projects,” said VMC Chief Accountant Ashok Tamboli.

He added: “Considering our efforts, the technical cell of the JNNURM headquarter has written to us to furnish our experience in implementing the new system.”

Earlier, the VMC has done valuation of the assets worth Rs 7,800 crore.

The VMC was also assessed by Mumbai-based Crisil after which the VMC received rating 'A' and with accrual-based accounting system, the VMC is expected to be rated with 'AA' grade.

Tamboli added that a booklet on certain success stories is being prepared by the JNNURM headoffice. "It is going to be a 20-page booklet and we are going to send about 10 points related to the accrual-based accounting system, so that others can take a cue from our VMC experience," he said.

Interestingly, both the Surat Municipal Corporation and the Ahmedabad Municipal Corporation have already adopted the system.

Meanwhile, JNNURM officials maintained that it is a routine procedure to seek such details.

"Such details are circulated in other municipal corporations who are lagging behind in managing data.

At the same time, the information is also sought if there are some shortcomings in their implementation," said an official at the JNNURM headquarter in New Delhi.

Annual budget of VMC to be presented on January 23
The annual budget of the Vadodara Municipal Corporation (VMC) will be presented on January 23 before the standing committee.

It will be for the first time that the budget will be passed on the accrual-based accounting system. According to official information, development works worth Rs 300 crore have been proposed for the new financial year.

Officials said that the funds will be utilised for the development of areas that have been recently included in VMC limits. Moreover, budget allocation has been made for the Vishwamitri project for the first time.

Also, the civic body will raise Rs 50 crore in form of taxes levied on the citizens.