Collapse of the CAG
We have no clue about our solvency
As a central govt or state or department
Over the last two decades, we have seen the demise of bureaucratic ambition leading to the irrelevance of bureaucratic intelligence. And this has really been chased by the abject failure of the CAG. Which in turn has been amplified by a broken and corrupt legal system to threaten the very foundation of our democracy.
Every single election is being fought on freebies. Free ration, free money, free electricity, free bus, free education. Anything that can get votes. Elections are now a competition on freebies. And there is no money for anything else. So much so that in most states the freebies are being given not from state surpluses but from borrowings. Govts don’t require collateral or net worth or credit ratings to get loans. It is really a phone call.
It is the job of the CAG to monitor the financial health of states, PSUs and govt departments. But the CAG has become toothless, delay probe and influencable. Audit reports are delayed endlessly till they lose relevance. End result is that there is no information for decision making.
What is CAG Audit?
Established under Article 148 of the Indian Constitution, the CAG is an independent constitutional body responsible for overseeing the financial accountability of the central and state governments, public sector undertakings, and other entities receiving substantial public funding.
The CAG’s audits ensure transparency, efficiency, and value-for-money in public spending, acting as a check on governmental excesses. Its reports are tabled in Parliament and state legislatures, where they are reviewed by committees like the Public Accounts Committee (PAC).
Key Types of CAG Audits
CAG audits are broadly categorized into three types:
• Financial Audit: Verifies the accuracy of financial statements, compliance with laws, and proper accounting of receipts and expenditures.
• Compliance Audit: Checks adherence to rules, regulations, and financial norms in government programs and schemes.
• Performance Audit: Evaluates the economy, efficiency, and effectiveness of public programs, often focusing on outcomes rather than just finances.
In line with India’s vision of “Viksit Bharat 2047” (Developed India by 2047), the CAG has supposedly shifted toward proactive, forward-looking audits emphasizing real-time monitoring, digital tools, and key national priorities. Highlights from recent announcements include:
• Urban Governance and “Ease of Living”:
• Ease of Doing Business for msme
• Foundational Literacy and Numeracy
• Multimodal Logistics and PM Gati Shakti:
By indulging in such time pass activities, the CAG has lost both relevance and respect in the core area of overseeing the financial accountability of central and state governments.