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VOL. I · EST. 11.2025 
SatyaDheesh
सत्याधीश
India's Ground Truth Record
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The Comptroller and Auditor General's (CAG) State Finances Audit Report for 2024-25

GS2Polity · Governance · IR· Transparency, accountability & RTI· Prelims + Mains·

Why in news

The CAG's State Finances Audit Report for 2024-25 highlighted significant financial irregularities and budgetary indiscipline in Maharashtra's Mukhyamantri Majhi Ladki Bahin Yojana.

Background

The CAG identified an unjustified excess expenditure of Rs 3,541 crore and Rs 15,586 crore parked in Virtual Personal Deposit Accounts. The scheme, launched on June 28, 2024, provides Rs 1,500 monthly to eligible women aged 21-65 with an annual family income below Rs 2.5 lakh.

Facts for Prelims

  • BodyCAG: Constitutional body established under Article 148 to audit all expenditure from the Consolidated Fund of India and State Governments.
  • FactMukhyamantri Majhi Ladki Bahin Yojana: Launched on June 28, 2024, targeting women with family income < Rs 2.5 lakh.
  • FactAudit finding: Rs 15,586 crore was found parked in Virtual Personal Deposit Accounts without immediate utilization requirements.

For Mains

Q. Examine the role of the CAG in ensuring fiscal discipline and transparency in the implementation of large-scale Direct Benefit Transfer (DBT) schemes at the state level.

Dimensions to cover in your answer

  • Fiscal indiscipline: Lack of justification for excess expenditure undermines the principle of budgetary propriety.
  • Audit oversight: CAG's role in identifying 'parked' funds highlights gaps in real-time monitoring of state finances.
  • Data integrity: Need for realistic beneficiary assessment to prevent leakage and over-budgeting in social welfare schemes.

Keywords: Fiscal Discipline · Budgetary Propriety · Direct Benefit Transfer · Audit Oversight · Financial Management

Full chronology for revision →Read the full news →Report a mistake in this noteSource: Indian Express ↗Also: GS2 · Constitutional bodies (CAG, UPSC, FC, NCSC...)

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