CAG Announces Creation of Centralized Cadres for Expenditure and Revenue Audits

The Director General of Audit (Central Expenditure) issued Circular No. 43 dated 21.11.2025 had announced initiative to establish centralized cadres for both Central Expenditure Audit (CEA) and Central Revenue Audit (CRA). This strategic restructuring is primarily motivated by the need to resolve issues of inconsistent staffing and to significantly improve the overall efficiency and effectiveness of audit operations.

The circular mandates a one-time exercise for existing Senior Audit Officers (SAOs) and Assistant Audit Officers (AAOs) to submit their cadre options. This critical option window is open until 05.12.2025 (11:59 pm), and all submissions are required to be made through the designated SAI Capacity Building Portal.

CREATION OF CENTRALIZED CADRES:

This fragmented cadre control, spread across sixteen (16) Cadre Controlling Authorities (CCAs) for CRA and nineteen (19) CCAs for CEA, had resulted in inconsistent staffing, reduced mobility, and suboptimal alignment with organizational needs. Headquarters, Central Training Institutes (CTIs) and Regional Capacity Building & Knowledge Institutes/Centers (RCB&KIs/Cs), predominantly dependent on deputation, face persistent shortages. To address these systemic issues, the C&AG has approved the creation of two centralized cadres at AAO and SAO levels:

1. Central Revenue Audit (CRA)

2. Central Expenditure Audit (CEA)

This new centralized system is scheduled to become fully operational by 01.01.2026

COVERAGE OF OFFICES:

The following offices were covered under this circular, firstly, Nine (09) DGA/PDA (Central) offices and their eleven (11) Branch Offices performing both CRA & CEA;secondly, Exclusive CRA Office: DGA (CR), New Delhi;thirdly, Exclusive CEA Offices: DGA (CE), New Delhi, PDA (I&CA), New Delhi (including Civil Manpower posted in DGA (Infrastructure), New Delhi, DGA(Energy), New Delhi, DGA, CE (E&SD), New Delhi, DGA (F&C),New Delhi ;fourthly, CTIs, RCB&KIs/Cs; and lastly Headquarters’ Cadre

REALLOCATION OF SANCTIONED STRENGTH:

Reallocation of Sanctioned Strength in terms of CRA and CEA were explained in the following manner:

1. Central Revenue Audit (CRA) Cadre:

CRA cadre was formed by transferring Sanctioned Strength (SS) of SAO and AAO in the following manner, firstly, 2/3rd2/3rd SS of DGA/PDA (Central) offices and their branch offices; secondly, SS of DGA (CR), New Delhi and lastly, SS of CRA Wing of Headquarters. Tentative strength of CRA cadre works out to 478 SAO and 934 AAO. Same is subject to change based on respective audit jurisdictions.

2. Central Expenditure Audit (CEA) Cadre:

CEA cadre was formed by transferring Sanctioned Strength (SS) of SAO and AAO in the following manner:

(i) 1/3rd1/3rd SS of DGA/PDA (Central) offices and their branch offices

(ii) DGA(CE), New Delhi excluding DGA(CR), New Delhi and including PAG (Audit), Delhi

(iii) DGA (F&C), New Delhi including its branch offices

(iv) SS of PDA (I&CA), New Delhi which includes SS of Civil Audit allocated for DGA, CE (E&SD), New Delhi, DGA(Infrastructure), New Delhi, DGA (Energy), New Delhi and PDA (AFWR), New Delhi

(v) Approximately 75 percent of SS of Headquarters

(vi) CTI’s

(vii) RCB & KIs/Cs

The tentative CEA strength of the cadre works out to 1,030 SAOs and 1,814 AAOs subject to changes based on respective audit jurisdictions.

SS of exclusive Central Audit offices viz. DGA (Central), Kolkata, DGA (CE), New Delhi (including offices under its cadre control), PDA (I&CA), New Delhi, and NAAA, Shimla shall be reduced to zero, as on 01.01.2026, as the entire SS is to be transferred to either the CEA or CRA cadres. These offices shall function with the existing allocated strength, without having the CCA function in respect of officials borne in either CEA or CRA cadre. The existing cadre shall be treated as a Dying Cadre which shall be operated only for the non-optee SAOs and AAOs with supernumerary posts. Both CRA and CEA cadres shall be managed centrally from the Headquarters.

Furthermore, the circular meticulously details the conditions and implications for employees who choose to join the newly formed centralized cadres, those who opt to remain within their existing State Civil Audit Cadres, and those who will be placed in the designated "dying cadres."

The scheme aims to address functional issues emerging due to administrative bottlenecks in terms of cadre management spread across multiple CCAs. However, the functional roles and responsibilities of the impacted offices shall remain aligned with the existing set-up. HODs and Group Officers of these offices shall discharge their duties as per the roles assigned in the existing arrangement.

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Thus, the Circular explained administrative reform within the Central Audit Department, aimed at enhancing efficiency. It is incumbent upon the all the Senior Audit Officers and Assistant Audit Officers to thoroughly evaluate their options before the stipulated deadline of 05.12.2025, and to fully comprehend the long-term implications of their choices concerning the new centralized cadres, their existing State Civil Audit Cadres, and the designated "dying cadres."

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