Delhi Chief Minister Rekha Gupta on Tuesday, 11 August 2026, tabled a Comptroller and Auditor General (CAG) report in the Delhi Legislative Assembly during its Monsoon Session, launching a sharp attack on the previous Aam Aadmi Party (AAP) government for alleged mismanagement of public funds and systemic financial indiscipline. Gupta declared that every rupee of public money would henceforth be deployed with full transparency and accountability.

Key Findings of the CAG Report

Speaker Vijender Gupta outlined that CAG Report No. 1 covers audit findings and observations relating to various Delhi government departments for the financial year 2022–23. The report flags revenue loss in stamp duty and registration fees, unnecessary expenditure by the Delhi Subordinate Services Selection Board (DSSSB), irregularities in the power sector subsidy policy, and shortcomings in the e-procurement system. It also examines payments at GTB Hospital, irregularities in DSIIDC, matters relating to the Public Works Department, construction of the new block at LNJP Hospital, the Delhi Transport Corporation, and the Delhi Jal Board.

The State Finances Audit Report (Report No. 2 of 2026) was also discussed in the session and is being forwarded to the concerned departments for Action Taken Notes. The Public Accounts Committee (PAC) will take further action on those notes thereafter.

Budget Utilisation Failures Under AAP

Chief Minister Gupta cited a stark figure at the centre of her critique: out of the ₹80,798 crore budget for 2024–25, the previous AAP government reportedly spent only ₹61,000 crore — leaving a significant portion undeployed. She attributed this to what she called a 'lack of intention to do public welfare.'

She further alleged that the AAP administration failed to utilise central government funds earmarked for cleaning the Yamuna river, combating air pollution, reducing garbage dumps, and improving roads. Additionally, she accused the previous government of announcing 32 schemes worth over ₹1,500 crore without adequately utilising the sanctioned funds.

Specific Allegations Against the AAP Government

Gupta levelled a series of specific charges against the AAP administration. She alleged the previous government delayed Delhi Metro expansion by withholding its share of funds, returned central allocations meant for the Ayushman health scheme, and ignored funds for a school of excellence and a transparent ration card system.

On GST refunds, she drew a direct comparison: 'They issued returns of just ₹695 crore in one year, whereas our government issued GST returns worth ₹1,313 crore in one year,' she said. She also accused the AAP government of repeatedly promising but never launching the Delhi Lakshmi Yojana — a monthly financial aid scheme of ₹1,000 for women — alleging announcements were timed around elections without follow-through.

Gupta also said the Public Accounts Committee (PAC) was rendered defunct under the AAP government, and that the CAG report — which she said should have been presented far earlier — was allegedly withheld from the public by the previous administration.

AAP's Record and the Political Context

'There was hardly any sector which did not suffer due to a scam. Whether it was a matter of floating a tender, formulating a policy or giving subsidy, there were scams in all their actions,' Gupta said, according to her address in the Assembly. She described the current Bharatiya Janata Party (BJP) government's role as corrective, using the metaphor: 'The termite in the system dates back to their era. The BJP government is now spraying pesticide to control the decay.'

This comes amid the BJP's broader political offensive against AAP following its victory in the Delhi Assembly elections. The tabling of the CAG report — covering the period when AAP was in power — gives the ruling party legislative ammunition to press accountability demands. Critics, however, may argue that the framing of the report's release is itself politically timed.

What Happens Next

The State Finances Audit Report has been forwarded to departments for their Action Taken Notes at the earliest, with the PAC set to follow up. The government's stated commitment to fiscal discipline and institutional accountability will be tested in the months ahead as these audit findings are acted upon — or contested — across departments.