Value addition to public governance by the CAG - Legislative, Policy & Regulatory Reforms

Case studies in this section illustrate the wide-ranging and tangible impact of audit interventions by the CAG in strengthening legislative, policy, and regulatory frameworks across diverse sectors and geographies. Spanning Union Government ministries and agencies such as CBDT (Central Board of Direct Taxes), CBIC (Central Board of Indirect Taxes and Customs), Ministry of Civil Aviation, and Ministry of Defence, Central Public Sector Enterprises (Steel Authority of India Limited), financial institutions (SBI Cards), as well as State Governments and authorities including Jammu & Kashmir, Chhattisgarh, and Uttar Pradesh (Greater Noida Industrial Development Authority), these cases cover domains such as taxation, mining, infrastructure, aviation, defence pensions, urban development, and public works. Collectively, they demonstrate how evidence-based audit findings have led to amendments in laws and subordinate legislation, introduction of standardised procedures, digitisation of systems, and strengthening of governance frameworks. These efforts have resulted in improved compliance, enhanced revenue realisation, better service delivery, and more robust accountability mechanisms.

Revision of District Mineral Foundation (DMF) framework, Government of Jammu & Kashmir

The office of the Accountant General (Audit), Jammu and Kashmir, during the audit, observed that the District Mineral Foundation (DMF) Rules, 2017, notified by the Department of Geology and Mining, were not aligned with the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, and the Jammu and Kashmir Minor Mineral Concession, Storage, Transportation of Minerals and Prevention of Illegal Mining Rules, 2016, resulting in short collection of ₹14.55 crore from minor mineral lease holders.

Based on audit recommendations, the Government amended Rule 11 through S.O. 69 dated 8 February 2023 to align contribution rates with statutory provisions, ensuring alignment of subordinate legislation with the parent Act and strengthening the revenue framework governing mineral resources.

Highlights

• Amendment of Rule 11: The Mining Department, Government of Jammu & Kashmir amended Rule 11 of the J&K DMF Rules, 2017 through S.O. 69 dated 8 February 2023
• Policy alignment and revenue restoration: Brought the Rules in line with the Mines and Minerals (Development and Regulation) Act, 1957 and restore the prescribed contribution framework to the District Mineral Foundation

SDGs