State Governments making advances for greater efficiency in public financial management: CAG

Sep 19, 2025

New Delhi [India], September 19 : Comptroller and Auditor General of India (CAG) K Sanjay Murthy on Friday said that state governments are making advances in the adoption of technology in bringing about greater efficiency in the public financial management framework.

However, he pointed out that there are lots of differences in the maturity level of these digital applications.

Speaking at the annual Conference of State Finance Secretaries, convened by CAG today, he said there are concerns about the security and legality of e-vouchers in some states, which should be resolved with the adoption of the latest technologies.
The Conference deliberated on strengthening the country's public financial management framework, with a focus on leveraging IT systems and digital platforms for effective governance, centrally sponsored schemes, dissemination of good practices in public finances, and enhancing accounting and auditing of State Public Sector Enterprises and Autonomous Bodies.
CAG stated that another area which needs top priority is the integration of various IT applications like e-Procurement, WAMIS, with IFMIS and other applications with robust data validation for better financial monitoring.
Murthy further mentioned that we have successfully conducted the remote audit of GST, Stamp and Registration, e-Procurement, Works Audit, DBT Schemes in some States.
"Now, our target is to roll out this remote audit in all Departments across the country wherever Departments have digitised their data/records," he added.
In addition, K Sanjay Murthy stated that the CAG institution is also giving emphasis on the Audit of Urban Local Governments (ULGs), including in areas such as "ease of living" with special focus on 100 cities with a population greater than five lakhs.
CAG also appreciated the efforts of States in mapping centrally sponsored schemes with Sustainable Development Goals.
CAG spoke about the digital initiatives and emphasised on end-to-end e-service delivery for 67 lakh pensioners and over 24 lakh GPF subscribers in 19 States.

He noted that full digitisation of pension functions has already been completed in six States.

Further, he noted that State Accountants General (A&E) offices from CAG are working with state government to strengthen capacity through district level engagements on grassroots level accounting issues.
CAG also outlined initiatives taken by CAG for collaborative working with the state and Local governments in improving the capacity of staff and to strengthen the Municipal Finances and the Audit of Urban Local Bodies.

CAG stated that as we move forward, the path to a Viksit Bharat rests on a strong foundation of fiscal governance, transparency, and accountability at every level--from our national institutions down to our local bodies.
Addressing the Conference, the Secretary (Expenditure), Ministry of Finance, Government of India, Vumlunmang Vualnam observed that the issues deliberated upon were highly relevant for Governments at both the Union and State level.

He noted that initiatives like SNA SPARSH will enable better cash management and recommended that schemes like Special Assistance to States for Capital Investment (SASCI) will help the states in the implementation of the IT-related infrastructure, like IFMS, in the Public Finance.

More News