Rankings Are Not Linked to Fund Allocation or Incentives, But Will Help Identify States Needing Closer Monitoring

New Delhi: The rural development ministry will use artificial intelligence to rank states on how quickly and effectively they respond to internal audit observations, aiming to strengthen financial oversight and improve flagship rural schemes. The AI-enabled internal audit portal will digitize the entire audit lifecycle, from planning to closure, and assess states on key performance indicators such as audit response quality, timeline adherence, and corrective measures. The ministry has been allocated ₹2.31 trillion in FY27 for flagship programs, including Viksit Bharat–Guarantee for Rozgar and Ajeevika Mission (₹95,692.31 crore), Pradhan Mantri Awaas Yojana-Gramin (₹54,916.70 crore), Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (₹19,200 crore), and Pradhan Mantri Gram Sadak Yojana (₹19,000 crore).

The system will examine fund utilization, idle balances, inadmissible expenditure, compliance with financial rules, and internal controls. It will also convert legacy audit observations into actionable tasks, integrate with the public financial management system and scheme management information systems to identify financial risks early. Rankings are not linked to fund allocation or incentives, but will help identify states needing closer monitoring. The ministry said the portal aims to establish internal audit as an early-warning and corrective-action system, with any future linkage to fund allocation depending on government policy.