CAG Flags Lapses in PMAY-G DBT Transfers: The Case for Blockchain in Public Finance

A landmark recommendation in the report is the adoption of blockchain-based accounting techniques. By leveraging a decentralized ledger, the government can ensure real-time tracking of every rupee transferred. Blockchain’s inherent features—immutability and transparency—would prevent unauthorized alterations of beneficiary data and provide an automated, tamper-proof audit trail. This shift from traditional 'post-facto' auditing to 'real-time' oversight could redefine the role of the CAG in the digital era, moving from identifying errors after they occur to preventing them through systemic design. For the government, these findings serve as a call to move beyond simple digitization toward 'smart governance.' Ensuring that the DBT system is robust is essential for maintaining the sanctity of the budgetary process and fulfilling the constitutional mandate of social justice through effective housing delivery. UPSC Relevance: This development is highly relevant for GS Paper II (Governance and Accountability) and Public Administration (Financial Management). It provides a contemporary case study on the limitations of current e-governance models and the role of the CAG in suggesting technological reforms to enhance parliamentary control over public expenditure and improve the utilization of public funds.