1.Constitution of the 2nd ARC

The Government of India set up the Second Administrative Reforms Commission in 2005 under Veerappa Moily.

Its mandate was to propose systemic reforms that would enhance the transparency, responsiveness, and effectiveness of public administration.

2.Why a Report on Financial Management Systems?

Sound public financial management (PFM) is crucial for fiscal discipline, resource allocation, and quality service delivery.

Fragmented processes, lack of transparency, outdated budgeting methods, and inadequate controls create inefficiencies and opportunities for corruption.

Recognizing these issues, the 2nd ARC focused on strengthening financial management in government for better outcomes and citizen trust.