States Boost Tech in Public Finance, But Challenges Remain: CAG Insights
In a key meeting in New Delhi, India’s Comptroller and Auditor General (CAG), K Sanjay Murthy, praised state governments for stepping up their game in using technology to make public financial management smoother and more efficient. Speaking at the annual Conference of State Finance Secretaries on Friday, he highlighted how digital tools are transforming governance across the country.
Murthy pointed out that while progress is clear, not all states are at the same level when it comes to adopting these digital applications. "There’s a lot of variation in maturity levels," he said, adding that some states still face worries over the security and legal aspects of e-vouchers. He urged them to tackle these issues by embracing the latest technologies for better public finance management.
The conference focused on big topics like strengthening India’s public financial management framework. Discussions zeroed in on using IT systems and digital platforms for smarter governance, especially for centrally sponsored schemes. They also shared best practices in public finances and ways to improve accounting and auditing for State Public Sector Enterprises and Autonomous Bodies.
One key area Murthy stressed is integrating various IT tools, such as e-Procurement, Works Accounts Management Information System (WAMIS), and Integrated Financial Management Information System (IFMIS). He called for strong data validation to boost financial monitoring and ensure everything runs seamlessly.
The CAG team has already notched up successes with remote audits in areas like Goods and Services Tax (GST), stamp and registration, e-Procurement, works audit, and Direct Benefit Transfer (DBT) schemes in several states. "Our next goal is to expand these remote audits to all departments nationwide, wherever data and records are digitized," Murthy added. This push for digital audits aims to make oversight faster and more reliable.
Murthy also spotlighted the growing focus on auditing Urban Local Governments (ULGs). With an emphasis on improving "ease of living," the CAG is targeting 100 cities with populations over five lakhs. He gave a thumbs up to states for linking centrally sponsored schemes to the United Nations’ Sustainable Development Goals (SDGs), calling it a smart move for long-term growth.
On the digital front, Murthy highlighted end-to-end e-service delivery for over 67 lakh pensioners and 24 lakh General Provident Fund (GPF) subscribers across 19 states. Six states have fully digitized their pension functions, making life easier for millions. Plus, State Accountants General offices are teaming up with state governments for grassroots training on accounting issues at the district level.
The CAG is also working closely with states and local bodies to build staff capacity, strengthen municipal finances, and enhance audits for urban local bodies. "As we build a Viksit Bharat, strong fiscal governance, transparency, and accountability—from national levels to local ones—will be the foundation," Murthy emphasized.
Echoing these points, Vumlunmang Vualnam, Secretary (Expenditure) in the Ministry of Finance, said the discussions are super relevant for both central and state governments. He praised initiatives like the System for Pension Administration (Raksha) or SPARSH for better cash management and suggested schemes like Special Assistance to States for Capital Investment (SASCI) to help states roll out IT infrastructure, including IFMS, in public finance.
Overall, the conference underscored how technology is key to efficient public financial management in India, with CAG leading the charge for nationwide digital upgrades.
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