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How CAG Is Going to Fight Corruption in India?

Comptroller Auditor general (CAG) is doing a commendable task by bringing all the corruption cases to the knowledge of Parliament which in turns bring the info to open domain.

This time Govt acting on the report of CAG is going to implement payments above Rs. 25,000 to suppliers, contractors, grantee and loanee institutions to be directly credited to their bank accounts. This is going to be implemented wef 01 Apr 2012.

It is important to note that payments to government servants above Rs.25,000 will be credited directly to their bank accounts. Controller General of Accounts(CGA) “Government e-payment gateway” to facilitate the payments.

This is a good initiative as it will curb inflation and will boost the economy as any amount credited in bank becomes white money and they need to pay income tax or service tax on it. This will cut down the money paid under the table as now the full amount will be paid in bank amount. However to get the amount directly credited in the bank they may resort to greasing of the palms. Nonetheless economy will benefit by way of higher amount credits being reflected in bank accounts.

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