New Delhi, Nov 21 (PTI) The Comptroller and Auditor General of India has initiated an audit of reforms implemented by states and UTs to improve the ease of doing business for the micro, small and medium
enterprise (MSME) sector.
The pan-India horizontal audit cutting across states aims to evaluate how effectively states and Union Territories have implemented reforms to improve the business environment for MSMEs — one of India’s most critical engines of economic growth.
“The audit will assess whether MSMEs receive efficient, transparent, and timely services from public institutions. It will evaluate the progress made in simplifying regulations, digitising processes, and decriminalising minor offences that affect businesses,” Pravir Pandey, Additional Deputy CAG (Railways), said during an interaction.
This initiative aligns with national priorities such as Viksit Bharat @2047 and Business Reform Action Plan 2024 spearheaded by the Department of Promotion of Industries and Internal Trade, he said.
Earlier this year, Comptroller and Auditor General of India Sanjay K Murthy had emphasised the strategic shift in CAG’s approach, moving beyond traditional financial and compliance checks to evaluating outcomes and the effectiveness of reforms.
Murthy directed state accountant generals to an integrated audit approach that brings together various dimensions of governance, service delivery, and regulatory performance to provide a comprehensive assessment.
Giving details, Pandey said the audit will assess whether MSMEs receive efficient, transparent, and timely services from public institutions.
It will evaluate the progress made in simplifying regulations, digitising processes, and decriminalising minor offences that affect businesses.
“The exercise will also review the impact and effectiveness of major MSME schemes and the utilisation of public resources. In addition, the nationwide coverage will enable inter-state comparisons, promote the adoption of best practices, and strengthen the overall reform ecosystem,” he added.
The audit is being coordinated by Manish Kumar, Principal Accountant General, West Bengal, serving as the Lead Audit Office for all 32 states/UTs.
Inputs have been obtained from deliberations in the Audit Advisory Board Meetings, Teamlease and KPMG, industry bodies (FICCI, CII, ASSOCHAM, FISME, PHDCCI), MSME Departments of the Government of India and the West Bengal government for the audit design framework. MoSPI-empanelled survey agencies would be engaged to provide feedback from MSME entrepreneurs.
The intended value addition to stakeholders by this audit will be identification and recommendations on operational efficiencies, improving ease of doing business based on recommendations towards regulatory simplification, modalities for improving financial access and linkages, digital Integration and transparency, and benchmarking good practices in states, the Additional Deputy CAG said. PTI NKD NKD BAL BAL
