The accounting system of local government is a key aspect of local governance in India, and it has gradually evolved over the years. While Panchayats have achieved significant milestones with the adoption of the Model Accounting System over the last decade, the accounting system of the Autonomous District Councils (ADCs) under the Sixth Schedule of the Constitution of India has undergone minimal changes over the years. This study highlights recent developments in the Panchayat accounting system, utilising a phased approach that divides accounting reform into periods. It also examines and compares the accounting systems of Panchayats with those of ADCs. It has been found that while Panchayats currently have a uniform method of accounting with standard manuals and dedicated software across the country, the ADCs have no such established accounting system, and some of their basic accounting practices vary across states, highlighting the urgent need to introduce accounting reforms in the councils.
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