CAG to audit “Ease of Living” in 101 cities, launches AI-powered financial audit center

How much has the quality of life improved for Indians? Are urban residents seeing better housing, water supply, and transportation? To answer these questions, the Comptroller and Auditor General of India (CAG) is gearing up for a large-scale field survey.

Starting in 2026-27, the CAG will conduct a special performance audit under the “Ease of Living” initiative across 101 cities nationwide. CAG K. Sanjay Murthy announced in Hyderabad on Wednesday that the audit will take place in phases over the next three to four years. “Through focused short-term studies, we aim to uncover the real picture,” he said.

On the same day, the CAG also inaugurated the Centre of Excellence for Financial Audit in Hyderabad. This is the fourth specialized center under the CAG, and it will fully modernize financial auditing using AI and data analytics.

Thanks to Digital India, government data is now centralized. “We are already auditing GST data in real-time through our centers in Bengaluru (CEDAR) and Delhi (CDMA). We plan to extend this approach to other sectors as well,” Murthy explained.

To prepare for future audits, over 5,000 CAG officials will receive specialized training in AI, data analytics, and cybersecurity through IIT Madras.

The Centre of Excellence for Financial Audit has signed a framework agreement with the Institute of Chartered Accountants of India (ICAI). Under this partnership, both institutions will jointly handle training, research, and publications related to audits of public sector enterprises, autonomous bodies, and urban local bodies.

Murthy emphasized that the CAG is no longer limited to traditional financial audits. The organization is evolving into a “smart auditor” that will also assess citizens’ quality of life.