Capacity Gaps in Local Government Audits Raise Accountability Concerns

 

January 22, 2026

India’s top auditor has raised concerns over capacity gaps in local government audit institutions, warning that weak oversight undermines accountability. Speaking at a national review meeting, officials highlighted shortages of trained auditors, outdated methods, and limited use of technology. These issues affect audits of municipal corporations, panchayats, and urban development authorities. With cities managing expanding budgets, ineffective audits can allow financial irregularities to go undetected. The CAG called for enhanced training programs, standardized procedures, and greater use of digital tools. Strengthening grassroots audit institutions is seen as essential to improving transparency and ensuring that public funds are used effectively.