Finance & Public Financial Management Professionals
Finance and public financial management professionals play a critical role in ensuring sound fiscal governance, effective resource allocation, transparent financial reporting, and robust risk management. Through its audits and accounting-related interventions, the CAG provides valuable insights that help strengthen financial controls, improve accounting practices, enhance compliance with statutory and regulatory requirements, and support evidence-based fiscal decision-making. The examples presented in this section demonstrate how audit findings and professional engagement contributed to improved financial reporting, strengthened fund management frameworks, enhanced revenue accountability, better risk governance, correction of accounting irregularities, and more transparent management of public resources. These outcomes underscore the role of audit in promoting fiscal discipline, transparency, accountability, and resilience across both public finance systems and financial institutions.
Key Case Studies
- Strengthening credit risk governance in corporate card sanctions, SBI Cards
Strengthened credit governance: SBI Cards strengthened its internal credit governance framework (SDGs: 8)
- Advancing timeline for closure of Monthly Civil Accounts (MCA)
Accelerated monthly accounts closure: GA Wing actively pursued advancement of timelines for closing Monthly Civil Accounts (MCA) of 28 States, aiming to improve the timeliness of financial reporting to State Governments. (SDGs: 17, 16)
- Reduction in use of minor head ‘800’ across State Finance Accounts
Decline in receipts and expenditure under minor head 800: Comparative analysis shows a marked reduction in receipts and expenditure under minor head 800 from FY 2013–14 to FY 2024–25 (SDGs: 16)
- Creation of Budget Stabilisation Fund, Jharkhand
BSF implementation initiated: Implementation progressed in coordination with the Finance Department and RBI following notification of the BSF framework (SDGs: 8, 16)
- Detection of incorrect allowance of deductions relating to bad and doubtful debts, Income Tax Department
Cases reopened and tax reassessed: Inadmissible amounts added back to turnover and tax liability recalculated (SDGs: 8, 16)
- Rectification of interest credited to SDRF and SDMF balances, Madhya Pradesh
Correction of significant under-credited interest: Identification and rectification of incorrect interest rates led to additional credit of ₹498.13 crore, ensuring accurate fund balances (SDGs: 13, 16)
- Creation of the Oil Industry Development Fund (OIDF) and transfer of cess proceeds
Creation of Oil Industry Development Fund: Oil Industry Development Fund created as a Reserve Fund in the Union Government Finance Accounts (UGFA) for FY 2024-25 (SDGs: 16)
- Rationalisation of mineral receipts accounting to enhance transparency and compliance
Accounting reforms implemented (2024–25): Government of India implemented reforms in consultation with Ministry of Mines, State Governments, and CAG (SDGs: 12, 15, 16)
- Rectification of incorrect booking of pension payments post bifurcation, Telangana
Correct classification implemented: Pension payments correctly classified under Sub head (34) from September 2024 onwards following rectification by Government of Telangana (SDGs: 16)
- Strengthening pricing discipline in PMFBY to prevent reinsurance losses, Oriental Insurance Company Limited
Discontinued PMFBY underwriting: OICL stopped underwriting crop insurance under the traditional PMFBY model from 2020–21 onwards (SDGs: 2, 8)