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CAG Launches Data-Driven Audit Overhaul, Orders Uniform Spending Codes by FY 2027–28

The plan moves audits to full‑dataset analysis under a new Hyderabad centre with pan‑India reviews of MSME reforms alongside ESG compliance.

Overview

  • The CAG has notified a harmonised list of Object Heads for the Union and all states, advising adoption preferably from FY 2027–28 to improve transparency and comparability of spending.
  • A pan‑India audit of MSME ease‑of‑doing‑business reforms is underway across 32 states and UTs, led by West Bengal’s Principal Accountant General, with survey feedback and a consolidated report slated for Parliament’s winter session 2026.
  • The institution is assessing ESG disclosures by roughly 30 listed and 19 unlisted state‑run companies against Sebi’s BRSR framework, with a report expected in about four to five months.
  • A Centre of Excellence for Financial Audit in Hyderabad has been announced to standardise methodologies, break silos between Audit and Accounts, and support AI‑enabled audits including development of an indigenous CAGLLM.
  • Operational changes include plans for a central data hub covering PSUs and autonomous bodies and advancing Monthly Civil Accounts finalisation to the 10th of each month, along with clearer classification of mineral receipts.