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8 August 2026

CAG report on Delhi power subsidies

The CAG report serves as a concrete case study for evaluating the efficacy of public fund utilization, transparency in governance, and the role of constitutional bodies in auditing state-level welfare schemes.

1 min read Day 4 of 4 2 questions 1 prelims

Notes

  • The Comptroller and Auditor General (CAG) audit of Delhi's power subsidy scheme (2019-20 to 2022-23) identified ₹42.26 crore in subsidies paid to domestic consumers with no recorded consumption.
  • The audit highlighted a regressive subsidy structure where consumers with higher electricity usage received significantly higher average subsidies per connection compared to low-consumption users.
  • Power subsidies accounted for 66.96% to 70.39% of Delhi's total subsidy expenditure between 2019-20 and 2022-23, with costs rising from ₹2,405.59 crore to ₹3,161 crore.
  • Audit findings included tax and fee irregularities totaling ₹220.59 crore across 145 cases.
  • The report flagged ₹29.45 crore as 'unfruitful' expenditure by the Delhi State Industrial and Infrastructure Development Corporation regarding land acquired for a Gems and Jewellery Park and Fashion Design Hub.
  • The Delhi Cabinet has approved a draft Bill to establish a legal framework for private universities in the national capital to address the migration of students to other regions.

Part of a longer story

This is day 4 of 4 in CAG audit of Delhi electricity distribution companies, which has been running since 23 June 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Examine the role of the Comptroller and Auditor General (CAG) in ensuring fiscal accountability in state-level subsidy schemes. Discuss the implications of audit findings on public policy design and resource allocation. 150 words
    Attempt this — 150 words in 8 min
    0 / 150 words 8:00
  2. Critically analyze the challenges associated with the implementation of direct benefit transfers and electricity subsidy schemes in urban governance. How can audit mechanisms be strengthened to ensure that subsidies reach the intended beneficiaries while maintaining fiscal sustainability? 250 words
    Attempt this — 250 words in 11 min
    0 / 250 words 11:00

Prelims

  1. Which constitutional body is responsible for auditing the accounts of the Union and the States in India?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-08-08/cag-report-on-delhi-power-subsidies