The Comptroller and Auditor General (CAG) has flagged financial irregularities worth ₹54,282 crore in the Union Government’s accounts for the financial year 2024-25. The audit report highlights delays in accounting for government expenditure, pending utilisation certificates, and weaknesses in financial management across several ministries.
The findings have reignited discussions on transparency and accountability in public spending, with the CAG urging stronger financial controls and better monitoring mechanisms.
What The Audit Found
According to the audit, 33,973 utilisation certificates worth ₹54,282.32 crore remained pending across 15 ministries and departments as of March 31, 2025. Utilisation certificates are required to confirm that government grants have been used for their intended purpose within the prescribed timeline.
The report notes that while many of the pending certificates relate to recent financial years, some cases date back several decades, indicating long-standing issues in expenditure reporting and fund utilisation.
Other Financial Irregularities Highlighted
Apart from pending utilisation certificates, the CAG identified instances of incorrect accounting and fund classification amounting to more than ₹12,700 crore. The audit also pointed to delays in transferring funds collected through various cesses and levies to designated reserve funds.
Additionally, the report flagged unresolved accounting discrepancies, unreconciled balances, and continued reliance on broad accounting categories that make it difficult to accurately track government expenditure.
The auditor observed that these practices reduce transparency and make financial reporting less reliable.
Recommendations For Better Financial Management
The CAG has recommended stricter adherence to accounting rules, timely submission of utilisation certificates, and stronger monitoring of government spending. It has also suggested enhancing the Public Financial Management System (PFMS) to enable real-time tracking of expenditure and improve accountability.
According to the report, stronger digital oversight and better coordination between ministries could help reduce delays, improve financial reporting, and ensure that public funds are utilised efficiently.
Why The Report Matters
The CAG’s observations do not necessarily indicate financial fraud but highlight shortcomings in financial reporting, documentation, and compliance with accounting procedures. The findings are expected to be examined by Parliament’s Public Accounts Committee, which may seek explanations from the concerned ministries and recommend corrective measures.
Summary
The CAG has reported financial irregularities involving ₹54,282 crore in the Union Government’s 2024-25 accounts, citing pending utilisation certificates, incorrect fund classification, and weak financial controls. The audit recommends stronger accounting practices, improved digital monitoring, and timely reporting to enhance transparency, accountability, and the effective management of public funds.
