Particle.news

Download on the App Store

CAG Says AI Exposed Fraud, Sets Sights on Expanding Remote Audits Across States

The auditor urged integration of finance IT systems to boost transparency, with e-voucher vulnerabilities flagged for urgent fixes.

Overview

  • CAG K Sanjay Murthy said AI and machine learning uncovered a large number of fraudulent cases during audits of beneficiary schemes in several states.
  • The institution has piloted remote audits for GST, stamp and registration, e-procurement, works and DBT schemes, with plans to extend them wherever departments have digitised records.
  • State public finance platforms vary widely in digital maturity, which the CAG noted is shaping how quickly data-led oversight can scale.
  • Security and legal concerns were raised over e-voucher systems in some states, with a call to adopt stronger technologies to address them.
  • Priorities include integrating e-procurement and WAMIS with IFMIS with robust data validation, expanding end-to-end digital pension services for about 6.7 million pensioners and 2.4 million GPF subscribers across 19 states, and stepping up audits of Urban Local Governments with a focus on 100 big cities.