New Delhi: Comptroller and Auditor General of India (CAG) K. Sanjay Murthy today called for deeper technology integration, stronger governance practices, and improved fiscal transparency across States, while addressing the second Conference of State Finance Secretaries in New Delhi.
Speaking before Finance Secretaries from across the country, senior officials from the Finance Ministry, the Reserve Bank of India, and heads of accounting services from Railways, Defence and Telecom, the CAG said the path to a “Viksit Bharat” rests on strong fiscal governance, accountability, and efficient use of public funds.
Highlighting the gains made in digitisation, Murthy lauded States such as Assam, Andhra Pradesh, Bihar, Rajasthan, Uttarakhand, and Odisha for adopting e-vouchers and eliminating the physical flow of documents. He urged lagging States to strengthen the security and legality of e-vouchers and integrate platforms like IFMIS, WAMIS and e-Procurement systems for robust monitoring.
The CAG revealed that artificial intelligence and machine learning tools used in forensic audits have already unearthed large-scale frauds in State beneficiary schemes. “This AI/ML-based audit can save significant financial resources of State Governments, which are presently being misused,” he noted, while underlining remote audits as a top priority.
Murthy also drew attention to gaps in the financial management of State Public Sector Enterprises (SPSEs) and Autonomous Bodies, stressing that several institutions require urgent reforms. The CAG’s office, he said, has developed a “maturity matrix” to help States identify weak entities and track improvements.
Major GDP Contributors, but poor infrastructure
Turning to urban governance, Murthy pointed out that cities like Mumbai, Delhi, Bengaluru, Chennai and Hyderabad—contributing nearly 30% of India’s GDP—still suffer from congestion, pollution, and poor infrastructure despite increased funding. Referring to the ₹1 lakh crore Urban Challenge Fund announced in the Union Budget 2025-26, he said: “Our combined efforts must shift from accounting to City Financial Management using data-driven decision-making.”
First Publication on State Finances by CAG
The conference also saw the release of the CAG’s first-ever Publication on State Finances for FY 2022-23, covering fiscal data of 28 States over the last decade. The document, Murthy said, will aid policymakers, academics, and finance managers with detailed insights on revenues, expenditure, debt, liabilities, and deficit indicators.
Telangana initiative is a model
Murthy further welcomed Telangana’s initiative to train district-level finance and treasury officials through a new MoU with Dr. MCR HRD Institute, describing it as a model for strengthening grassroots capacity.
The day-long conference, attended by nearly 200 delegates, featured four technical sessions covering IT-enabled governance, audit of State PSUs, management of Centrally Sponsored Schemes, and dissemination of best practices in public finance.
