Understanding CAG's Role in the 'Ease of Living' Developmental Audit

Introduction to the CAG's 'Ease of Living' Audit

The Comptroller and Auditor General (CAG) of India has embarked on a unique developmental audit to assess how cities operate and how public services impact everyday life. Unlike traditional audits that focus on financial compliance, this innovative approach evaluates whether public expenditure results in tangible improvements in services, mobility, education, environment, and local economic growth. The focus is on outcomes rather than mere expenditures.

Purpose of a Developmental Audit

While financial audits verify the appropriate use of funds, developmental audits assess whether spending has genuinely enhanced living conditions and service delivery. For instance:

• In a pipeline project, the audit investigates if households are receiving a consistent and adequate water supply.
• For a new bus fleet, it examines improvements in routes, frequency, accessibility, and safety measures.
• In waste-management contracts, it checks the timeliness of collection and the reduction in citizen complaints.

This method allows governments to identify structural gaps rather than just procedural issues.

Reviewing 101 Cities for Future Readiness

As urbanization in India accelerates towards 2047, cities require robust infrastructure, improved services, and dynamic economic ecosystems. The ease-of-living audit scrutinizes urban infrastructure, service quality, sustainability, safety, and local economic conditions. The evaluation includes:

• Assessing whether new green spaces reduce heat in congested areas.
• Determining if flood-prone areas experience fewer incidents after drainage enhancements.
• Examining if women feel safer with improved street lighting and CCTV coverage.

The audit provides evidence to guide reforms in city planning and service delivery.

Impact on MSME Conditions and Local Economic Growth

Micro, Small, and Medium Enterprises (MSMEs) are crucial for local employment and production. The audit reviews trade-licence processes, digital approvals, property-tax systems, and freight operations to evaluate how urban systems impact enterprise growth. Key considerations include:

• Whether single-window systems expedite business startups.
• If digital platforms reduce face-to-face interactions and delays.
• Stability and predictability of logistics charges around industrial areas.

Insights from the audit aim to foster a more supportive business ecosystem.

Evaluating Foundational Literacy and Numeracy (FLN)

The audit assesses early-grade learning outcomes to align with national development goals. Strong FLN skills are essential for future education and workforce productivity. The audit reviews:

• Reading and numeracy levels in early grades.
• The impact of teacher-training programs on classroom practices.
• Targeted interventions in districts with persistent learning gaps.

A strong FLN foundation is vital for long-term human capital development.

Assessment of Multimodal Transport and Logistics

Efficient logistics and reduced travel time are critical for urban competitiveness. The audit examines the coordination among railways, ports, road networks, and city-level regulations. Key assessments include:

• Freight train schedules and their adherence.
• Smooth cargo movement between ports, terminals, and rail networks.
• Local regulations' impact on last-mile delivery and cost implications.

Enhanced multimodal logistics can significantly reduce operational costs and improve economic efficiency.

Digital Era Audit Capacity Strengthening

The CAG is investing in advanced training in data science, AI, and cybersecurity to effectively audit digital platforms, smart-city systems, and automated workflows. This investment strengthens evidence-based decision-making in complex public programs.

Constitutional Mandate for Developmental Audits

How the Constitution Empowers These Audits

Articles 148–151 of the Constitution establish the CAG, ensuring its independence and mandating that its reports are presented before legislatures. Article 149 empowers Parliament to define the CAG’s functions, leading to the enactment of the CAG (Duties, Powers and Conditions of Service) Act, 1971. This Act authorizes audits covering expenditure, performance, efficiency, and outcomes.

The Fit of Developmental Audits Within This Authority

The Act explicitly authorizes audits that assess the effectiveness and impact of government programs. Given modern public schemes aim to enhance wellbeing, education, mobility, and environmental resilience, evaluating these outcomes is well within the CAG's mandate. For example:

• A mobility project might be audited for reduced travel time and improved accessibility.
• A sanitation project could be assessed for better hygiene and public-health outcomes.
• An education scheme may be reviewed for measurable learning improvements.