Value addition to public governance by the CAG - Financial Recovery & Strengthening Public Finances

The following case studies illustrate the wide-ranging and tangible impact of audit interventions by the CAG in safeguarding public finances and strengthening financial governance across diverse sectors and levels of government. Spanning Union Government departments, Central Public Sector Enterprises, financial institutions, and State Governments including Madhya Pradesh, Telangana, Uttarakhand, Odisha, Uttar Pradesh, and Jharkhand, these cases cover domains such as power, taxation, mining, infrastructure, welfare funds, public enterprises, and financial reporting. Collectively, they demonstrate how evidence-based audit findings have led to recovery of substantial public funds, enforcement of contractual provisions, correction of revenue leakages, strengthening of accounting and financial system, and improvements in procurement and investment practices. These interventions have not only protected the public exchequer through recoveries and additional revenue mobilization, but also contributed to systemic improvements in fiscal discipline, transparency, and accountability in the management of public resources.

Recovery of excess payments in Kaleshwaram Project following audit intervention

The office of the Principal Accountant General (Audit), Telangana, Hyderabad, during the audit, examined the accuracy of cost estimates, price-adjustment calculations and payment mechanisms adopted by the Irrigation and Command Area Development Department in three packages of the Kaleshwaram Lift Irrigation Project in Telangana. It noticed incorrect preparation of estimates, inappropriate application of price-adjustment formulae and other procedural deviations, resulting in excess payments to contractors and indicating weaknesses in technical scrutiny, internal controls and contract management.

Audit recommended reassessment and recomputation of payment calculations, particularly price-adjustment components, to identify and recover excess amounts paid. The Government accepted the audit observations and recovered the entire excess amount of ₹65.45 crore from the concerned contractors.

Highlights

• ₹65.45 crore recovered from the concerned contractors
• Full recovery achieved following acceptance of audit observations
• Contract-payment controls strengthened through reassessment of estimates and price-adjustment calculations

SDGs