Release of the book titled ‘When Audit Matters’Edited by Shri Vinod Rai, former Comptroller and Auditor General of India

I touch and salute the Holy Feet of Bharat Mata – the Most Powerful and the Most Merciful. Bharat Mata Ki Jai!

Today, on the occasion of the release of the book, ‘When Audit Matters’ Edited by Shri Vinod Rai, former Comptroller and Auditor General of India, the dignitaries sharing the dais with me, Editor of the Book & Former CAG, Shri Vinod Rai Ji; Director I.S.A.S Singapore, Dr. Iqbal Singh Sevea Ji; Indian Audit and Accounts Service Retired officer, Dr. Praveen K Tiwari Ji; Managing Director, Rupa Publications, Shri Kapish Mehra Ji; and other dignitaries.

I am pleased to release today the book ‘When Audit Matters: CAG Interventions That Made a Difference’, edited by Shri Vinod Rai, former Comptroller and Auditor General of India. The book culminates a project by the Institute of South Asian Studies, Singapore, examining governance and accountability in South Asia. I am happy to note that a project of such nature has been spearheaded by a former CAG. Shri Rai assembled former senior audit officers to share key audits, focusing on process, challenges, and impact. Drawing on his civil service career, Shri Rai emphasizes ethics, probity, and citizen-focused audits that strengthen institutions.

Audit is a vital instrument for strengthening democracy. It assures citizens that public money is being used for public good, in accordance with law, efficiency, and fairness. It helps governments improve systems, correct deficiencies, and enhance outcomes. Most importantly, it reinforces trust between the state and the citizen.

The evolution of accountability, transparency and ethics in India has had a long history. We are reminded of the concepts of dharma, raja-dharma and public duty in epics like the Ramayana and Mahabharata and our Dharmashastras. Kautilya’s Arthashastra prescribed the duties of ministers, and audit-like controls on revenue and expenditure. Royal decrees, proclamations and inscriptions prescribed norms, policy and moral expectations. The Ashok an edicts are one example.

The post-independence period consolidated modern governance principles rooted in our moral and philosophical traditions. The rule of law got enshrined in the Constitution. It established separation of powers, financial accountability, and an independent Comptroller and Auditor General under Parliamentary oversight. The period also saw establishment of All India and Central services, rules and codes of conduct that institutionalized probity and ethics in public life. The organization of CAG now has over 40,000 officers and staff from over 125 offices all around the country. CAG plays a vital role in auditing Union and State Governments, Public Sector Enterprises, and Autonomous Bodies, and in compiling State Accounts. The CAG has also led the development of international standards and best practices in public auditing. CAG has acquired a formidable reputation in the area of international auditing. It has been the lead auditor for several international organisations like the United Nations and its specialised agencies.

Over time, CAG audits have strengthened legislative oversight and informed public debate, vital to a vibrant democracy. It is in this context that the book assumes its significance. The authors have uncovered the stories behind audits that formal reports rarely convey. The book has been written in an anecdotal style and covers a wide range of subjects dealt within the past audits. These include audits of fiscal responsibility, GST, policy implementation, privatisation, and challenges in auditing frontier regions. Mr. Rai himself has written a chapter on Ethical Governance, emphasizing that it is indispensable for the country to attain the Viksit Bharat status.

The accountability cycle in a parliamentary democracy is both comprehensive and continuous. The process starts when Parliament or State Legislatures debate and approve the Budget. The CAG examines whether expenditure has been incurred in accordance with legislative intent and financial rules. The audit findings are then placed before Parliament or the State Legislatures, where they are subjected to detailed examination by the Public Accounts Committees. Thus, from budget approval to audit and legislative examination of audit reports, a complete circle of fiscal oversight is established. This cycle reinforces transparency, accountability, and democratic control over public finances at both the Union and State levels. This enduring CAG–Public Accounts Committee partnership has over the years strengthened transparency, governance, and parliamentary oversight of public expenditure.

I am also happy to note that the book argues for the ethical governance to be the moral foundation of public administration. Building ethics in governance requires translating expectations into clear goals and conduct standards. It requires a system that values and promotes leadership by example. Such a framework makes it possible for the Auditors to go beyond financial compliance and evaluate ethical frameworks.The book also advocates for ethical behaviour in both public and private sector, NGOs and citizen groups. It is important that they all subscribe to a common ethical standard. In this light, ethical governance becomes a moral imperative, as the book argues. This is important since the governance systems are designed to subserve public interest. Ethical governance reinforces constitutional values while enabling sustainable development.

A responsible auditing system requires continuous improvement and investment in the auditing resources. Such measures include training, technology upgrades, performance evaluation, data analytics, and sectoral expertise. For the auditors to have legitimacy the auditors must stand up to the same scrutiny as other components of the governance system. Audit leadership must lead by example and consistently foster ethics and integrity.

I am of the firm belief that a combination of ethics and audit can be transformative. It can lead to improved public services, efficient use of public resources, greater resilience to shocks and enhanced public trust and morale. When aligned with ethics and constructive action, Audit has the potential to translate ideas into realities.

Institutions which practice integrity and accountability do more than prevent waste and corruption. They deliver better lives for citizens. Audit can be the searchlight that can help us look for the areas to improve so that we can hold on to our cherished principles of governance. I compliment Mr Rai and his colleagues for this landmark publication which showcases the positive contribution of Audit in upgrading governance. Their effort enriches public discourse and reinforces the enduring importance of institutional accountability in a vibrant democracy. I am confident that this book will be widely read, debated, and appreciated by everyone who cares about good governance and the health of our democratic institutions.

• Jai Hind!

• Long Live Mother Bharat!

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