Message from the Comptroller and Auditor General of India

The Comptroller and Auditor General of India derives its authority from the Constitution of India and related laws and regulations. The CAG Organisation holds a unique position in India's federal structure, being entrusted with auditing the Union and State Governments and compiling the accounts of most State Governments.

The Organisation has discharged these responsibilities diligently, providing assurance and insight to the Legislature, Executive and public. The wider value and contributions arising from audit reports, accounts, entitlements and organizational initiatives has often remained dispersed and not been captured in a consolidated manner.

Guided by INTOSAI-P-12 on the value and benefits of Supreme Audit Institutions, we have established a structured mechanism through dedicated Impact Cells in field offices to track developments arising from audit findings, recommendations, accounting reforms and organisational interventions. This enables us to present the outcomes of our work in a single report for various stakeholders.

I am pleased to present the report 'CAG: Adding value to public governance 2025-26'. It showcases outcomes that advance accountability, transparency and good governance through high-quality auditing and accounting. The report highlights the value added by the organisation to the public governance across five dimensions:

A defining theme of the report is the way timely audit and accounting interventions have supported evidence-based governance, stronger public financial management, better internal controls, recovery of public dues and systemic reforms through legislative, regulatory and executive action.

The report also captures the wider social and environmental value of audit, including improvements in labour welfare, disaster management, solid waste management and environmental disclosure. These outcomes reinforce audit's contribution to inclusive and sustainable development and national commitments under the Sustainable Development Goals.

Measuring the value addition done by audit to public governance remains an evolving practice. This report represents a step towards systematic and transparent reporting of value addition to public governance. The cases included have been drawn from the field offices of IA&AD through a structured methodology, and the framework will continue to be refined in the years ahead.

The report's forward-looking agenda includes thematic management letters, standardised audit design matrices and guidelines, technology-enabled audit expansion and a stronger competency architecture. Together, these measures demonstrate the CAG Organisation's commitment to remaining relevant, responsive and impactful in the journey towards Viksit Bharat @2047.

These outcomes also reflect the constructive engagement of the Union and State Executives with the CAG Organisation. It is acknowledged that the commendable response of the Ministries, Departments, State Governments and other public authorities to audit findings, and the action taken on audit recommendations, have enabled many of the outcomes documented in this report.

Across sectors, audit findings have led to policy changes, revised procedures, stronger digital controls, recoveries and improved service delivery. This reflects a mature governance culture in which audit is recognised not only as an accountability mechanism but also as a source of assurance, insight and institutional learning that can support sustained reform.

I commend the officers and staff of the CAG Organisation across headquarters and field offices whose professional rigour, integrity and sustained effort underpin the outcomes presented in this report. I hope that every member of the Organisation will take pride in the public value created through their work and recognise how careful audit examination, reliable accounting and entitlement functions, persistent follow-up and innovation contribute to good governance and service delivery. I am confident that this report will serve both as a record of achievement and as a foundation for future progress.