CAG Report Highlights Issues in Indian Army Proceedings

The Comptroller and Auditor General of India (CAG) has released a report for the financial year ending March 2021. This report focuses on the Indian Army‘s operational and financial management. It marks persistent delays in the finalisation of Court of Inquiry (CoI) proceedings. The report covers various aspects of the Army’s operations, including financial losses, the functioning of the Remount and Veterinary Services, and the management of water supply.

Delays in Court of Inquiry Proceedings

The CAG report indicates delays in CoI proceedings. Out of 95 cases involving financial loss across three Army Commands, only 46 cases met the stipulated timeline for assembly and completion. In the Eastern Command, the timeline was met in only 25 cases. Some CoIs took more than two years to complete, with one case taking up to 11 years. These delays hinder accountability and transparency within the Army.

Financial Losses and Reporting Issues

The audit assessed financial losses amounting to ₹50.76 crore in 95 cases. Only 43 cases had losses regularised, totalling ₹7.12 crore. In 52 cases, information regarding regularisation was unavailable. Furthermore, required documents for reporting losses to the Controllers of Defence Accounts (CsDA) were missing in 57 cases. This lack of documentation raises concerns about the Army’s financial management and oversight.

Concerns in Remount and Veterinary Services

The audit evaluated the performance of the Remount and Veterinary Services (RVS). It noted that key training goals were not achieved. These included the import of elite stallion semen and training raptors to hunt drones. The failure to meet these objectives impacts the operational readiness of military animals.

Raising of Porter Companies

The Ministry of Defence sanctioned the raising of nine Porter Companies in the Eastern Command. However, the deployment of porters was not optimally managed. Out of 12,000 hired porters, only 7,938 were allocated to Engineer Regiments. This inefficiency resulted in 3,359 porters being deployed elsewhere. The lack of utilisation certificates for many porters suggests inadequate oversight.

Expenditure Issues

The report flagged unwarranted expenditure due to delays in terminating bandwidth services by the Canteen Stores Department. Additionally, avoidable expenses of ₹3.20 crore were noted due to non-compliance with IRC specifications in road markings. These financial discrepancies highlight the need for improved financial governance.

Overall Implications

The findings of the CAG report suggest systemic issues within the Indian Army’s operational and financial practices. Delays in inquiry proceedings, inadequate documentation, and inefficient resource management point to a need for reform. Addressing these issues is crucial for enhancing accountability and operational efficiency.

Questions for UPSC:

1. Critically analyse the impact of delays in Court of Inquiry proceedings on accountability in the Indian Army.
2. Estimate the significance of financial management audits in improving the operational efficiency of defence services.
3. What are the challenges faced by the Remount and Veterinary Services in the Indian Army? Provide suitable examples.
4. With suitable examples, explain the implications of inefficient resource allocation in military operations.

Answer Hints:

1. Critically analyse the impact of delays in Court of Inquiry proceedings on accountability in the Indian Army.

1. Delays hinder timely justice and accountability for financial losses.
2. In 11 cases, CoI took over two years, affecting transparency.
3. Only 46 out of 95 cases met the stipulated timelines, suggesting systemic inefficiencies.
4. Prolonged inquiries may lead to loss of evidence and diminished trust in the process.
5. Ultimately, these delays can erode morale and confidence among personnel and the public.

2. Estimate the significance of financial management audits in improving the operational efficiency of defence services.

1. Audits identify financial discrepancies, ensuring accountability in resource allocation.
2. They highlight areas of inefficiency, such as delays in reporting financial losses.
3. Regular audits can lead to improved financial governance and transparency.
4. They help in assessing the effectiveness of financial controls and procedures.
5. Ultimately, audits encourage better decision-making and operational efficiency within the defence services.

3. What are the challenges faced by the Remount and Veterinary Services in the Indian Army? Provide suitable examples.

1. Key training goals were not achieved, impacting operational readiness.
2. Examples include failure to import elite stallion semen for equine upgrades.
3. Training raptors for drone detection was also underachieved.
4. Lack of modernisation in the 13th Plan limits capabilities of military animals.
5. These challenges affect the overall effectiveness of military operations involving animals.

4. With suitable examples, explain the implications of inefficient resource allocation in military operations.

1. Deployment of porters was poorly managed, with 3,359 allocated outside Engineer Regiments.
2. This inefficiency results in wasted resources and reduced operational effectiveness.
3. Inadequate utilisation certificates for porters suggest lack of oversight and accountability.
4. Delays in financial reporting can lead to budgetary mismanagement and operational delays.
5. Overall, inefficient resource allocation can compromise mission success and readiness.