Performance audits are moving the CAG's role from checking compliance to assessing outcomes. Examine this with reference to recent sectoral audits.

Under Articles 148–151 and the CAG (DPC) Act, 1971, the CAG was set up to check legality and regularity: whether money was spent as voted. Performance audits test economy, efficiency and effectiveness, so they ask a different question: did the spending deliver results? Recent sectoral audits show the shift is real but not complete.

Shift towards outcomes: recent audits

• Health, AB-PMJAY (Report No. 11 of 2023): measured reach against target. 7.87 crore households were registered, 73% of the 10.74 crore targeted. It also flagged many beneficiaries registered against the same or invalid mobile numbers [2].
• Infrastructure, Bharatmala Phase-I: tested value for money. Sanctioned costs were on average 58% above approved costs. The Dwarka Expressway cost ₹250.77 crore/km against an approved ₹18.20 crore/km [3].
• Power, discoms (2026): a horizontal performance audit of discoms' operational and financial performance, plus PM Surya Ghar, compares outcomes across states at once [1]. It targets the sector's weakest link: losses from poor billing efficiency and high AT&C losses [4].
• New methods: an MoU with Vasudha Foundation brings in power-sector expertise, going beyond checking ledgers [1].

Limits of the shift

• No enforcement power: findings are only recommendations. Their impact depends on follow-up by the PAC/COPU, which is often slow.
• Compliance still matters: the CAG also plans a compliance audit of regulatory challenges [1]. The two kinds of audit work together.
• Jurisdiction gaps: the CAG's power over private discoms is still disputed. Yet the draft Electricity (Amendment) Bill, 2025 would let several discoms supply one area [6].
• Gaps in regulation: the Supreme Court called unchecked regulatory assets a "regulatory failure" and ordered them cleared by 1 April 2028 [5]. A check of accounts alone would miss such deferred costs.

Way forward

• Audit against benchmarks that courts and schemes have already set, so legislatures get a common scorecard across states.
• Require time-bound action-taken reports. The new electricity law should state how private discoms' use of public money will be audited.

Recent audits show the CAG moving from "was the rule followed?" to "was the result delivered?". Stronger follow-up by legislatures and a clear mandate over public money in private hands would help these outcome audits build the accountable institutions that SDG 16 calls for. That would match Ambedkar's view of the CAG as the most important officer under the Constitution.