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How to track Union Territory spending using the CAG Report 2022-23

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Ever wondered where your UT's budget actually goes? This guide shows you how to decode the CAG Report on UT Finances (2022-23) to find out if funds were wasted or well-spent.

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#CAG Report 1 of 2024#UT Finance Audit 2022-23#Delhi budget audit#J&K finance report#Comptroller and Auditor General India#Article 151 Constitution#fiscal deficit UT#government spending transparency

Your UT budget is not a secret

You live in Delhi, Puducherry, or Jammu & Kashmir. You hear the government announcing a budget of ₹70,000 crore for "world-class infrastructure" or "education reforms." Six months later, your local government school still has broken desks, and the flyover construction has stalled for the third time this year. Where did that money actually go? Most people complain on X (formerly Twitter) and move on because they think government accounts are too complex to understand. But there is a document—the CAG Report 1 of 2024 on Union Territory Finances—that acts as the ultimate receipt for every rupee spent by your UT government between April 2022 and March 2023. This is your playbook on how to read it and hold the system accountable.

What the law and the CAG actually say

The Comptroller and Auditor General (CAG) of India isn't just another government department; it is a Constitutional authority established under Article 148 of the Constitution of India. Often called the "Guardian of the Public Purse," the CAG’s job is to ensure that the government spends money exactly how the legislature intended.

For Union Territories (UTs) with Legislative Assemblies (Delhi, Puducherry, and J&K), the CAG prepares an annual "Report on Finances." This specific report (Report No. 1 of 2024) covers the financial year 2022-23. Under Article 151 of the Constitution, these reports must be submitted to the Lieutenant Governor, who then ensures they are laid before the UT Legislative Assembly.

According to the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, the CAG has the power to audit all expenditure from the Consolidated Fund of the UT. The report isn't just a list of numbers; it measures the UT's performance against the Fiscal Responsibility and Budget Management (FRBM) Act. It flags three main things:

  1. Fiscal Deficit: Is the UT borrowing too much to pay for daily expenses?
  2. Capital Expenditure: Is the money being spent on long-term assets like hospitals and roads, or just on salaries and interest (Revenue Expenditure)?
  3. Financial Mismanagement: Did the government spend more than the Assembly approved, or did they let funds "lapse" (go unspent) while projects remained incomplete?

When the CAG finds a discrepancy, it's called an "Audit Observation." These observations are the legal basis for you to File an RTI online to ask for specific details about a failed project in your locality.

Step-by-step playbook: Decoding the 2022-23 UT Finance Report

Reading a 150-page audit report sounds like a nightmare, but you only need to look at specific sections to find the "smoking gun." Follow these steps to audit your own government.

  1. Access the official report

    Don't rely on news summaries; they often miss the local details.

    1. Go to the official CAG website: cag.gov.in.
    2. Navigate to the 'Audit Reports' tab.
    3. Select 'Union Territory' from the dropdown.
    4. Look for 'Report No. 1 of 2024 - Union Territory Finances, Government of [Your UT]'.
    5. Download the PDF. If the English version is slow, the Hindi version is usually available on the same page.

  2. The "Cheat Sheet" (Executive Summary)

    Every CAG report starts with an Executive Summary. This is the most important section for a quick vibe check. Look for the heading "What we found." It will explicitly state if the UT government met its fiscal targets. For the 2022-23 period, pay attention to the "Revenue Surplus/Deficit." If there is a revenue deficit, it means the government is borrowing money just to keep the lights on (salaries and rent) rather than building anything new.

  3. Check the "Capital Expenditure" (CapEx) lag

    Go to Chapter 1: Scope and Fidelity of Reporting. Look for the table on Expenditure Profile.

    • Find the line for Capital Expenditure.
    • Compare the "Budget Estimate" (what they promised to spend) with the "Actual Expenditure" (what they actually spent).
    • If the actual spending is significantly lower (e.g., they promised ₹5,000 crore for roads but spent only ₹3,000 crore), the government has failed to execute its own plans. This is your data point for a social media campaign or a local petition.

  4. Identify "Unspent Balances"

    In Chapter 2: Financial Management and Budgetary Control, the CAG lists grants where the government didn't spend the money allocated to them. Look for the section on "Savings."

    • If you see a large "saving" under the Department of Education or Health, it doesn't mean the government saved money efficiently. It usually means they failed to use the money allocated for schools or clinics.
    • Note the Grant Number and the amount. You can use this to ask your local MLA: "Why was ₹50 crore for school upgrades in our district left unspent last year?"

  5. Spot the "Quality of Accounts" red flags

    Go to Chapter 3: Financial Reporting. This is where the CAG calls out the government for "opaque" accounting. Look for "Personal Deposit (PD) Accounts." Governments sometimes move money into these side accounts to prevent it from lapsing at the end of the financial year (March 31st). The CAG hates this because it hides the real state of finances. If your UT has a high balance in PD accounts, it's a sign that transparency is low.

  6. Verify "Committed Expenditure"

    Check the section on Committed Expenditure (usually in Chapter 1). This includes salaries, wages, and interest payments. In many UTs, this eats up over 60-70% of the total revenue. If this percentage is rising every year, it means there is less and less money left for actual development work in your neighborhood.

  7. Take the data to the streets (or the screen)

    Once you have a specific number (e.g., "The CAG found that ₹200 crore for sewage treatment in Delhi remained unutilized in 2022-23"), you have power.

    • Post it: Tag the relevant department with the page number of the CAG report.
    • RTI it: Use the File an RTI online portal to ask: "Regarding the ₹200 crore unutilized funds mentioned on Page X of CAG Report 1 of 2024, provide the list of projects that were stalled due to non-utilization."
    • Timeline: The CAG report for 2022-23 was released in 2024. Use this data now, as the Public Accounts Committee (PAC) of the UT Assembly will be discussing these findings throughout 2025 and 2026.

    Browse all civic-action playbooks

Where it usually breaks

Tracking government money isn't always a smooth scroll. Even with the CAG report in hand, you’ll hit these common roadblocks:

1. The "Data Lag" Excuse Since you are looking at the 2022-23 report in 2026, officials will tell you, "That’s old news, we’ve fixed it now."

  • The Workaround: Use the CAG’s "Observations" as a baseline. If the 2022-23 report says ₹50 crore for school toilets was unspent, file an RTI asking for the "Action Taken Report" (ATR) on that specific paragraph. Under Chapter 4 of the CAG report (Quality of Accounts), you can find if the government actually responded to these queries.

2. The "Lapsed Funds" Trap You might see a huge amount of money "lapsed" (returned to the treasury) and assume it was stolen. Usually, it's worse: it’s incompetence. Departments often fail to submit "Utilisation Certificates" (UCs) on time, so the next installment of funds is blocked.

  • The Workaround: Check Appendix 4.1 of the report. It lists departments with outstanding UCs. If your local Education or Health department is on that list, they are the reason your local facilities aren't getting upgraded.

3. The "Off-Budget" Hideout Governments sometimes borrow money through state-owned companies (like a UT Power Corporation) so the debt doesn't show up on the main budget.

  • The Workaround: Look for the section on "Guarantees" in Chapter 1. This shows how much the UT government has promised to pay if these companies fail. It’s a hidden "ticking time bomb" for your UT's economy.

4. The PAC Black Hole Once the CAG submits a report, it goes to the Public Accounts Committee (PAC) of the UT Assembly. Often, these reports sit there for years without a public hearing.

  • The Workaround: If your UT has an Assembly (Delhi, Puducherry, J&K), find out who the Chairperson of the PAC is. Write to them asking for a status update on the "Examination of Audit Report No. 1 of 2024."

Templates & scripts

Copy, fill in the [highlighted] bits, and send.

Template 1: RTI to the UT Finance Department

Use this if the CAG report flags "Excess Expenditure" or "Unspent Provision" in a department that affects you (like Public Works or Health).

To: The Public Information Officer (PIO), Department of [Insert Department Name, e.g., Health & Family Welfare], Government of [Your UT].

Subject: Request for information under Section 6(1) of the RTI Act, 2005 regarding CAG Report 1 of 2024.

Description of Information sought:

  1. With reference to Audit Observation [Insert Para Number from the CAG Report] regarding the unspent balance of ₹[Insert Amount] in the year 2022-23, please provide a copy of the 'Action Taken Report' submitted by the department to the CAG or the Public Accounts Committee.
  2. Provide the current status of the project [Insert Project Name from report] as of October 2026.
  3. Provide copies of the Utilisation Certificates (UCs) submitted for this project for the financial years 2023-24 and 2024-25.

Note: I am an Indian Citizen. I have attached the fee of ₹10 via [Postal Order/Online Payment Receipt].

Template 2: Script for calling your MLA/Corporator’s office

"Hello, I am a resident of [Your Area]. I was going through the CAG Report on UT Finances for 2022-23. It shows that the Department of Urban Development failed to spend ₹10 crore allocated for drainage in our district, leading to the funds being surrendered. Since we still face waterlogging in 2026, I want to know if the MLA has raised this 'Audit Observation' in the Assembly or with the Lieutenant Governor. Can I get a written response on why these funds were allowed to lapse?"

Template 3: Email to the UT Finance Secretary

Subject: Public Concern: Transparency regarding Outstanding Utilisation Certificates (CAG Report 1 of 2024)

Body: Dear Secretary, The CAG Report on UT Finances (2022-23) indicates that [Number] Utilisation Certificates worth ₹[Amount] crore are outstanding as of March 2023. As a taxpayer, I am concerned that this delay in reporting prevents further fund releases for essential services. What steps has the Finance Department taken in the 2025-26 cycle to penalise departments that fail to submit UCs on time? I look forward to your response on the department's portal.

Frequently Asked Questions

1. Why should I care about a report from 2022-23 in 2026?

Government accounting moves slowly. The 2022-23 report is the most recent *verified* audit of how your UT actually behaved. It provides the "legal proof" of mismanagement. You can use this proof to demand better performance in the current 2026-27 budget cycle. If they failed then, they are likely using the same broken processes now.

2. Can the CAG arrest an official if they find a scam?

No. The CAG is an auditor, not a policeman. They flag the "irregularity." However, their report is a public document. Once a CAG report is "laid" in the Assembly, any citizen can use those findings to file a complaint with the Lokayukta or the Anti-Corruption Bureau (ACB) under the **Prevention of Corruption Act, 1988**.

3. What is the difference between "Revenue Deficit" and "Fiscal Deficit"?

Think of it like a household. A **Revenue Deficit** is when you don't earn enough to pay for groceries and rent. You are borrowing just to survive. A **Fiscal Deficit** is the total borrowing. If a UT has a Revenue Surplus but a Fiscal Deficit, it means they are borrowing to build assets (like metros), which is generally okay. If they have a Revenue Deficit, the UT is in financial trouble.

4. My UT doesn't have a Legislative Assembly (like Chandigarh or Ladakh). Where is my report?

For UTs without an Assembly, the CAG doesn't usually issue a separate "UT Finance Report." Instead, their accounts are audited as part of the **Union Government (Civil) Accounts**. You can find these on the CAG website under the "Union Government" tab rather than the "Union Territory" tab.

5. The report says "Nugatory Expenditure." What does that mean?

That is auditor-speak for "useless spending." It refers to money spent where the government got absolutely no value in return—like paying interest on a loan they forgot to use, or paying a contractor for work that was never started. It’s the biggest red flag for a citizen activist.

6. Is there a fee to access these reports?

No. Under the **Right to Information Act** and the CAG’s own transparency mandate, these reports must be available for free on **cag.gov.in**. If you want a physical copy from a government office, they might charge you the standard printing fee (usually ₹2 per page).

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How to track UT spending using CAG Report 2022-23 · HowToHelp