C&AG reform boosts audit cadre efficiency
The Comptroller and Auditor General (C&AG) of India introduces specialised Central Revenue Audit (CRA) and Central Expenditure Audit (CEA) cadres from January 2026 to enhance fiscal oversight and audit efficiency. Learn about their purpose, evolution of audit services, link with All India Services, and key governance challenges — vital for UPSC Polity and Economy preparation.
C&AG Reform Boosts Audit Cadre Efficiency: CRA & CEA Cadres and Governance Implications
Amid growing emphasis on fiscal transparency and outcome-based governance, the Comptroller and Auditor General (C&AG) of India has approved the creation of two specialised cadres—Central Revenue Audit (CRA) and Central Expenditure Audit (CEA)—effective January 1, 2026, to enhance domain expertise and audit quality in Central Government finances.
Why is there a need for such cadres?
- The creation of the CRA and CEA cadres by the Comptroller and Auditor General (C&AG) marks a critical institutional reform to enhance domain specialisation and audit quality in government finances.
- At present, audit responsibilities are fragmented across 16–19 cadre-controlling authorities, leading to inconsistencies in standards and deployment. With over 4,000 audit professionals now unified under central control, the reform aims to:
- Build professional expertise in revenue and expenditure audits;
- Ensure uniform audit practices;
- Enable flexible manpower deployment across the country; and
- Reduce administrative overheads.
- This reform aligns with the CAG’s Vision 2030, which emphasises technology integration, professional upskilling, and sharper financial oversight. It mirrors the global shift towards specialised auditing structures in OECD countries, where fiscal accountability depends on domain-based cadres.
How has the cadre of the Indian Civil Accounts Services evolved?
- The Indian Audit and Accounts Department (IA&AD) was historically responsible for both accounting and auditing of government finances.
- In 1976, following the Separation of Audit and Accounts reform recommended by the Public Accounts Committee (1971–72), the accounting function was moved to the Controller General of Accounts (CGA) under the Ministry of Finance, while the CAG retained audit functions.
- Thus, two parallel professional structures emerged:
- CGA (Accounts) – managing government expenditure accounts, payments, and fiscal reporting.
- CAG (Audit) – ensuring independent financial oversight of government receipts and expenditures.
- Over time, this separation strengthened accountability and reduced conflict of interest between expenditure management and audit scrutiny.
- The newly proposed CRA and CEA cadres under the CAG now reflect the next phase of this evolution — functional specialisation within the audit domain, similar to how the CGA developed professionalised accounting cadres.
Is there a need for more All India Services?
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- Yes. The TSR Subramanian Committee on Environmental Governance (2014) recommended the creation of an Indian Environment Service (IES) to address environmental regulation and enforcement gaps.
- Similarly, the Second Administrative Reforms Commission (ARC) and NITI Aayog (2021 report on Public Sector Capacity Building) highlighted the need for domain-specific All India Services in emerging areas such as:
- Environmental and Climate Governance,
- Public Health Administration,
- Cyber and Data Management, and
- Urban and Infrastructure Planning.
- These services would strengthen the capacity of State governments, where expertise is often limited. The rationale parallels the CRA and CEA reform — ensuring specialised human capital to meet complex, technical governance challenges.
How can All India Services be created?
The creation of new All India Services (AIS) is constitutionally enabled under Article 312 of the Indian Constitution, which allows Parliament to establish a new AIS in national interest, through a two-thirds majority resolution in the Rajya Sabha.
Implementation steps typically include:
- Legislative approval in Parliament;
- Cadre structure formulation by the Department of Personnel and Training (DoPT);
- Integration with State services through shared recruitment and training frameworks; and
- Specialised training institutions (for example, the proposed National Environment Management Institute for IES).
Past examples include the establishment of Indian Forest Service (IFS) in 1966 under this constitutional provision, demonstrating how functional expertise can be institutionalised within the AIS framework.
What are the major challenges associated with All India Services?
While expansion of AIS improves professional capacity, several structural challenges persist:
- Federal Sensitivities: States often express concern over central dominance in cadre control and postings. Balancing national standards with state autonomy remains contentious — evident in recent debates over IAS deputation rules (2022).
- Functional Overlap: New services risk duplication of roles with existing central and state departments. Clear delineation of responsibilities is crucial, as recommended by the Second ARC (2008).
- Recruitment and Training Gaps: Establishing domain expertise requires specialised training infrastructure and lateral recruitment — areas where traditional AIS have lagged, as noted in the Economic Survey 2022–23, which emphasised the need for “domain-based lateral entry” and continuous capacity building.
- Career Progression and Incentives: Frequent transfers and lack of professional growth opportunities deter talent retention, especially in technical cadres like the proposed CRA and CEA or future environment services.
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The Source’s Authority and Ownership of the Article is Claimed By THE STUDY IAS BY MANIKANT SINGH
