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VOL. I · EST. 11.2025 
SatyaDheesh
सत्याधीश
India's Ground Truth Record
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PAC grills Union government over ₹13 crore mismatched payments and 40.75 lakh scholarship delays

GS2Polity · Governance · IR· Education policy· Prelims + Mains·

Audit oversight and fiscal accountability in social welfare schemes: a GS2 and GS3 case study.

Why in news

The Public Accounts Committee (PAC) grilled the Union government over the CAG's 2025 report highlighting scholarship discrepancies and delays for 40.75 lakh beneficiaries.

Background

The PAC, led by K.C. Venugopal, is investigating a ₹13 crore mismatched payment in Haryana and delays affecting 40.75 lakh scholarship beneficiaries. The Social Justice and Empowerment Ministry must submit reports on fraud markers and these discrepancies within one month.

Facts for Prelims

  • BodyComptroller and Auditor General of India (CAG): The constitutional authority responsible for auditing the accounts of the Union and State governments.
  • FactThe CAG's 2025 report identified ₹13 crore in mismatched payments specifically in Haryana.
  • FactThe report highlights scholarship delays affecting 40.75 lakh beneficiaries.

Prelims practice question

With reference to the CAG's 2025 report on scholarship discrepancies, consider the following statements:

  1. The report highlights scholarship delays affecting 10 lakh beneficiaries.
  2. The report identified ₹13 crore in mismatched payments specifically in Haryana.
  3. The Social Justice and Empowerment Ministry was given six months to submit reports on fraud markers.

Which of the statements given above is/are correct?

  1. (a)2 only
  2. (b)3 only
  3. (c)1 and 2 only
  4. (d)1 and 3 only
Show answer

Answer: (a) 2 only — Statement 2 is correct. Statement 1 is incorrect: The report highlights delays affecting 40.75 lakh beneficiaries. Statement 3 is incorrect: The Ministry must submit reports within one month.

For Mains

Q. Examine the role of the CAG and Public Accounts Committee in ensuring fiscal accountability and the effective delivery of social welfare schemes in India.

Dimensions to cover in your answer

  • Audit-Action Gap: Delays in rectifying CAG observations regarding scholarship fraud and mismatched payments.
  • Administrative Bottlenecks: Inefficient state-level scholarship distribution mechanisms leading to beneficiary exclusion.
  • Transparency Deficit: Lack of robust fraud markers in the Social Justice and Empowerment Ministry's scholarship portal.

Keywords: Fiscal Accountability · Social Welfare · Audit Oversight · Administrative Transparency · Public Expenditure

Read the full news →Report a mistake in this noteHow notes are madeSource: The Hindu ↗Also: GS2 · Transparency, accountability & RTIAlso: GS2 · Constitutional bodies (CAG, UPSC, FC, NCSC...)

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