CAG Flags Serious Lapses In DBT, Says Crores Transferred Without Verification

Last Updated:December 18, 2025, 10:01 IST

CAG Sanjay Murthy attributed the lapses to weak data integration and government departments operating in silos, resulting in inconsistent databases and poor cross-verification.

AI-generated photo used for representation.

Comptroller and Auditor General of India Sanjay Murthy on Wednesday raised serious concerns over the functioning of the country’s direct benefit transfer (DBT) system, warning that “thousands of crores" were being credited into beneficiary accounts without the mandatory checks required to prevent duplication or misuse. Murthy attributed the lapses to weak data integration and government departments operating in silos, resulting in inconsistent databases and poor cross-verification.

According to a TOI report, Murthy told the inaugural batch of IRS officers at the National Academy of Direct Taxes in Nagpur that there were “significant gaps" in the system’s checks.

“Government departments are working in silos to such an extent that different joint secretaries in a single department do not refer to the same database," he said. Despite the push for Jan Dhan–Aadhaar–mobile linkage, he noted that the maturity of database deployment “remains far from adequate," with de-duplication and cross-verification still missing. “Still, there are thousands of crores going into the system without basic checks in financial inclusion schemes," he added.

Speaking to TOI about the need to plug these gaps, Murthy said data maturity varies widely across states. “India is a vast country and we cannot have the same yardstick everywhere. Southern states have a head start in the application of technology, leading to the availability of more mature data for audit," he said. While the negligence may not be deliberate, he stressed, “there should be a level of accuracy" in implementing government schemes and ensuring checks and balances are not ignored.

Addressing IRS probationers, the CAG said his department would share experiences and insights with tax officers to strengthen scrutiny. Databases maintained by the Ministry of Road Transport and Highways, the Goods and Services Tax Network and state financial management systems could serve as “a mine of information" for auditors, he noted. He added that technology has significantly accelerated social sector audits, allowing completion in 45 days and enabling simultaneous audits of multiple schemes.

News india CAG Flags Serious Lapses In DBT, Says Crores Transferred Without Verification

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