In a stark revelation, the Comptroller and Auditor General (CAG) of India, K Sanjay Murthy, has exposed critical vulnerabilities in the government's flagship Direct Benefit Transfer (DBT) system. Speaking in Nagpur on Wednesday, Murthy warned that thousands of crores of rupees are flowing into beneficiary accounts without mandatory checks, primarily due to weak data integration and government departments functioning in isolated silos.
Gaping Holes in Verification and Data Silos
Addressing the inaugural batch of Indian Revenue Service (IRS) officers at the National Academy of Direct Taxes (NADT), the CAG pinpointed the core issue. "There are significant gaps in the level of checks to prevent duplication and cross verification of data," Murthy stated. He elaborated that the problem of siloed operations is so severe that even different joint secretaries within a single ministry often do not refer to the same database.
This fragmentation defeats the very purpose of the JAM (Jan Dhan, Aadhaar, Mobile) trinity, designed to create a seamless, verified delivery network. "We say these are all Aadhaar-based beneficiaries, but the amount of de-duplication or cross-database verification mandated by the DBT mission is missing," the CAG explained. Consequently, vast sums under various financial inclusion schemes are being disbursed without these fundamental safeguards.
Regional Disparities and the Need for Scrutiny
Murthy, in conversation with TOI, acknowledged the challenges of scale, noting that India cannot have a uniform yardstick everywhere. He observed that southern states have a headstart in technology application, leading to more mature and auditable data. The auditor emphasized that while negligence may not always be deliberate, a basic level of accuracy in scheme implementation is non-negotiable.
He urged for a thorough examination of whether essential checks and balances are being followed when rolling out government welfare programs. To the IRS probationers, Murthy suggested that his department's officers would share their audit experiences with tax officials to open new avenues for scrutiny. He highlighted that databases from agencies like the Ministry of Road Transport, GSTN, and state financial management systems could be a goldmine of information for investigative research into systemic loopholes. "The methods being used to beat the system should be probed," he asserted.
Technology as an Audit Force Multiplier
On a positive note, the CAG illustrated how technology is revolutionizing the audit process itself. Citing a social sector audit, Murthy revealed that the ability to deploy advanced tech tools has slashed the audit duration from two years to just 45 days. The department has now reached a capacity where seven schemes can be audited simultaneously.
He noted that the CAG, as an external auditor, has the unique advantage of accessing and correlating databases across different schemes, a function often hampered within the siloed departments. Concluding on a bipartisan note, Murthy praised the functioning of the Parliament's Public Accounts Committee (PAC), chaired by an opposition member, stating that no political differences are visible as it works towards a common goal of accountability.
