20.09.2025 DAILY CURRENT AFFAIRS ANALYSIS

NEWS 1:AI-based audit detected fraudulent cases in states’ beneficiary schemes says CAG

GS-2 governance

• The CAG used AI and ML to detect widespread fraud in state beneficiary schemes.
• AI/ML-based forensic audits can potentially save state governments significant financial resources.
• The CAG is prioritizing the digitization of auditing processes for remote audits and greater coverage.
• Remote audits have been successfully conducted for GST, e-Procurement, and DBT Schemes in some states.
• States are adopting technology to improve public financial management, transparency, and accountability.
• SNA SPARSH will enable better cash management, and schemes like Special Assistance to States for Capital Investment will help states implement IFMS.

SPARSH (System for Pension Administration – Raksha)

• It is a comprehensive digital platform launched by the Controller General of Defence Accounts (CGDA) for managing the pensions of defence personnel and their families.
• Aim: To provide direct pension disbursement to beneficiaries without relying on banks as intermediaries.
• Functions:
  • Pension sanction and disbursement in one system.
  • Real-time tracking of pension status.
  • Elimination of delays/errors due to manual processing.
  • Digital life certificate submission.
  • Helpdesk & grievance redressal features.

IFMS = Integrated Financial Management System

It is an online financial management platform used by both the Central and State Governments in India for efficient management of public finances.

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🔹 Key Features of IFMS

1. Integration – Brings together all financial activities like budgeting, receipts, expenditure, accounts, and reporting into one system.
2. Transparency – Provides real-time visibility of government transactions.
3. Efficiency – Reduces delays in fund flow and ensures timely payments.
4. e-Governance – Enables online processing, minimizing manual paperwork.
5. Monitoring – Helps in tracking the use of funds, preventing leakages, and ensuring accountability.

NEWS 2:EC delists 474 registered unrecognised parties over poll no-show

GS-2 polity and governance

Election Commission delists 474 more unrecognised parties for not contesting elections in six years, totaling 808 parties delisted.

• The Election Commission’s guidelines stipulate that a party can be removed from the list of registered parties if it does not contest elections for six consecutive years.
• Among the 808 RUPPs delisted, 14 are from Bihar, where Assembly elections are scheduled for November.
• The EC has been conducting exercises to remove defunct RUPPs since 2001, doing so approximately “three to four” times.
• The EC’s action aims to ensure that political parties adhere to electoral regulations and maintain transparency in financial reporting.

Registered Unrecognised Political Parties (RUPPs)

1. Meaning

• A Registered Unrecognised Political Party (RUPP) is a political party that is registered with the Election Commission of India (ECI) under Section 29A of the Representation of the People Act, 1951, but does not meet the criteria to be recognised as either a National or State party.

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2. Recognition Criteria (for context)

• A party gets recognition as a State or National party if it fulfills certain conditions such as:
  • Securing a specified percentage of valid votes in elections.
  • Winning a certain number of seats in the State Assembly/Parliament.
  • Meeting performance thresholds set by the Election Symbols (Reservation and Allotment) Order, 1968.
• If a registered party fails to meet these thresholds, it remains a RUPP.

3. Features of RUPPs

• They can contest elections, but do not enjoy privileges of recognised parties.
• They cannot use a reserved election symbol; instead, they are allotted a free symbol.
• They are eligible to avail income tax exemption and receive donations.
• They are expected to comply with disclosure norms regarding funding and expenditure.

NEWS 3:Russia proposes localizing large and small nuclear power plants in India expanding Indo-Russian civil nuclear energy cooperation post Kudankulam project.

GS-3 science and technology

• Russia has offered India cooperation in localizing large and small nuclear power plants (NPP).
• The offer was made by Rosatom Director General Alexey Likhachov during a meeting with the Indian delegation in Vienna.
• The meeting occurred on the sidelines of the 69th annual session of the International Atomic Energy Agency (IAEA) General Conference held from September 15-20.
• Discussions included progress on the four units under construction at Kudankulam NPP for phases II and III.

Nuclear Power in India

• Implemented by the Nuclear Power Corporation of India Limited (NPCIL) under the Department of Atomic Energy (DAE).
• India follows a three-stage nuclear power programme (Homi Bhabha plan):
  1. Pressurised Heavy Water Reactors (PHWRs) using natural uranium.
  2. Fast Breeder Reactors (FBRs) using plutonium-based fuel.
  3. Thorium-based Reactors (AHWRs) for long-term sustainability (India has ~25% of world’s thorium reserves).

MAINS MOCK QUESTION

The Integrated Financial Management System (IFMS) is a step towards enhancing transparency, efficiency, and accountability in public financial administration. Discuss the objectives, key features, and challenges in implementing IFMS in India