In a landmark move, the Comptroller & Auditor General of India (CAG) has announced a comprehensive performance audit of 101 major cities, aimed at evaluating how effectively urban bodies are delivering on India’s “ease of living” vision. The exercise, unveiled by CAG K. Sanjay Murthy on Audit Diwas, marks a significant shift from traditional financial audits toward citizen-centric governance assessment.

A New Kind of Audit: From Ledgers to Lives

Unlike conventional audits that focus on financial compliance, this evaluation will examine actual outcomes experienced by citizens. The audit will cover parameters that directly shape everyday urban life, including:

• Quality and reliability of drinking water

• Public transport efficiency and last-mile connectivity

• Waste management systems and air quality

• Access to healthcare and civic amenities

• Urban planning, green cover, and sustainability practices

• Local economic growth and employment opportunities

• Climate resilience and disaster preparedness

Officials say the framework is aligned with the United Nations Sustainable Development Goals (SDGs), especially SDG 11: Sustainable Cities and Communities.

Why the Audit Matters Now

With over 36% of India’s population living in cities—and this number rising rapidly—urban centres are central to national economic output. Yet many cities face chronic issues: congestion, pollution, poor infrastructure maintenance, waste mismanagement, water shortages, and declining green cover.

The CAG’s nationwide audit aims to determine whether municipal corporations, smart city authorities, development bodies, and parastatal agencies are:

• Delivering essential services efficiently

• Ensuring transparency and accountability

• Using public funds responsibly

• Meeting environmental norms

• Providing equitable access to growth opportunities

The findings will be consolidated into a national report expected to guide future urban reforms.

Key Focus Areas of the Audit

1. Infrastructure and Urban Services

The audit will examine the performance and impact of multiple flagship programmes, including:

• AMRUT

• Smart Cities Mission

• Metro rail networks

• Water supply and sewerage upgrades

• Stormwater drainage systems

• Road safety and traffic management

• Digital governance tools

The aim is to assess whether these projects have genuinely improved mobility, service delivery, and quality of life.

2. Environmental Sustainability

Environmental indicators will play a major role, with auditors reviewing:

• Air pollution levels and trends

• Waste segregation and landfill management

• Protection of lakes, wetlands, and water bodies

• Urban biodiversity initiatives

• Renewable energy and energy-efficient infrastructure

• Climate adaptation and resilience plans

Cities that consistently fail environmental norms may face stronger recommendations for corrective action.

3. Urban Economic Growth

For the first time, a CAG audit will analyse how cities contribute to economic inclusion. This includes evaluating:

• MSME ecosystems

• Job creation and labour market indicators

• Ease of doing business at the municipal level

• Startup and innovation infrastructure

• Industrial and commercial zoning effectiveness

The goal is to map how urban economies enable livelihoods.

Building Accountability Into City Governance

The audit will incorporate citizen feedback, stakeholder consultations, and ground-level inspections. Officials emphasise that the intent is to guide policy—not punish city administrations.

Experts say this exercise brings much-needed credibility and independence to urban assessment, which is often based on self-reported data from municipal bodies. Persistent failures in sustainable development, environment compliance, and transparent procurement have highlighted the need for independent oversight.

Likely Outcome: Tiered Performance Benchmarking

While CAG has not announced a formal ranking system, sources say the final report may classify cities into tiers such as:

• High Performing

• Performing

• Low Performing / High Risk

Such classification could shape central funding, state policy direction, and future development priorities.

A Transformative Step for India’s Urban Future

The audit is being seen as a major milestone in strengthening accountability across India’s urban governance ecosystem. With cities expected to host nearly 50% of the population by 2047, the CAG’s report may become a foundational reference for next-generation reforms.

As CAG Sanjay Murthy said on Audit Diwas:

“The future of India is urban. Our audits must ensure that cities are not just engines of growth, but equitable, sustainable habitats for all citizens.”