CAG Uncovers Glaring Irregularities in Flagship PMKVY Skill Development Scheme
CAG audit reveals major flaws in PMKVY, including fake accounts and defunct training centers.
The Comptroller and Auditor General of India (CAG) has exposed significant irregularities in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a flagship skill development scheme. The audit report, tabled in the Lok Sabha, highlighted issues such as the use of '11111111111' as bank account numbers, the same photograph being used for multiple beneficiaries, pending payouts for over 34 lakh candidates, and numerous shuttered training centers.
These findings are critical as PMKVY was launched in 2015 to combat youth unemployment, which stood at 15% for the 15-29 age group in May 2025. The report underscores the need for robust oversight and accountability in government schemes to ensure effective utilization of public funds and achievement of intended social objectives.
Key Facts
CAG audit report tabled in Lok Sabha.
PMKVY launched in July 2015.
Unemployment rate for 15-29 age group was 15% in May 2025.
Over 34 lakh candidates had pending payouts.
UPSC Exam Angles
Role and functions of CAG as a constitutional body (Polity)
Government schemes: objectives, implementation challenges, and impact (Governance, Economy, Social Justice)
Skill development ecosystem in India: policies, institutions, and effectiveness (Economy, Social Justice)
Parliamentary oversight and accountability mechanisms (Polity, Governance)
Youth unemployment and demographic dividend (Economy, Social Justice)
Visual Insights
Key Findings from CAG Report on PMKVY (December 2025)
This dashboard summarizes the critical figures and issues highlighted by the Comptroller and Auditor General's report on the Pradhan Mantri Kaushal Vikas Yojana, providing a snapshot of the scheme's performance and challenges.
- Pending Payouts
- 34 Lakh+
- Youth Unemployment Rate (15-29 age group)
- 15%
- PMKVY Launch Year
- 2015
- CAG Report Tabled
- 2025
Number of candidates awaiting financial rewards, indicating significant operational bottlenecks and potential financial distress for beneficiaries.
The very problem PMKVY aims to solve, showing the persistent challenge despite the scheme's existence. The CAG report underscores the failure to effectively address this.
Marks the inception of the flagship skill development scheme, now under scrutiny for its decade-long implementation.
The year the audit report was presented, bringing to light critical irregularities and demanding immediate attention to scheme reforms.
More Information
Background
Latest Developments
The recent CAG audit report, tabled in the Lok Sabha, has exposed significant irregularities in the implementation of PMKVY. These include fraudulent practices like using invalid bank account numbers, duplicate beneficiary photographs, and the existence of non-functional training centers.
The report also highlighted pending payouts for a large number of candidates, indicating systemic failures in scheme delivery and financial management. These findings come at a time when youth unemployment remains a significant challenge in India.
Practice Questions (MCQs)
1. With reference to the Comptroller and Auditor General of India (CAG), consider the following statements: 1. The CAG holds office for a term of six years or until he attains the age of 65 years, whichever is earlier. 2. The CAG is responsible for auditing all receipts and expenditure of the Union and State governments, but not of government companies. 3. The CAG's reports relating to the accounts of the Union are laid before both Houses of Parliament by the President. 4. The CAG can be removed from office by the President on the same grounds and in the same manner as a judge of the Supreme Court. Which of the statements given above are correct?
- A.1, 2 and 3 only
- B.1, 3 and 4 only
- C.2 and 4 only
- D.1, 2, 3 and 4
Show Answer
Answer: B
Statement 1 is correct. The CAG holds office for a term of six years or up to the age of 65 years, whichever is earlier. Statement 2 is incorrect. The CAG audits the accounts of the Union and State governments, including government companies (under the Companies Act, 2013, and the CAG's DPC Act, 1971). Statement 3 is correct. Article 151(1) states that the reports of the CAG relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament. Statement 4 is correct. The CAG enjoys the same security of tenure as a Supreme Court judge and can be removed only by the President on an address by both Houses of Parliament on grounds of proved misbehaviour or incapacity.
2. Consider the following statements regarding the Pradhan Mantri Kaushal Vikas Yojana (PMKVY): 1. It was launched in 2015 with the objective of providing skill training to Indian youth to enhance their employability. 2. The scheme is implemented by the Ministry of Rural Development. 3. It aims to provide monetary rewards to candidates on successful completion of skill training and certification. Which of the statements given above is/are correct?
- A.1 only
- B.1 and 3 only
- C.2 and 3 only
- D.1, 2 and 3
Show Answer
Answer: B
Statement 1 is correct. PMKVY was indeed launched in 2015 with the primary objective of enabling a large number of Indian youth to take up industry-relevant skill training that will help them in securing a better livelihood. Statement 2 is incorrect. PMKVY is the flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE), implemented through the National Skill Development Corporation (NSDC). Statement 3 is correct. One of the key components of PMKVY is to provide monetary rewards to candidates who successfully complete the skill training and get certified, to encourage skill development.
3. In the context of ensuring accountability and transparency in government schemes, which of the following mechanisms are generally employed in India? 1. Parliamentary Committees like the Public Accounts Committee (PAC). 2. Audit reports by the Comptroller and Auditor General of India (CAG). 3. Social Audits conducted by local communities and civil society organizations. 4. Performance reviews by the NITI Aayog. Select the correct answer using the code given below:
- A.1 and 2 only
- B.2, 3 and 4 only
- C.1, 2, 3 and 4
- D.1, 3 and 4 only
Show Answer
Answer: C
All the listed mechanisms play a role in ensuring accountability and transparency in government schemes in India. 1. Parliamentary Committees (like PAC, Estimates Committee, Committee on Public Undertakings) scrutinize government expenditure and performance, often based on CAG reports. 2. CAG audits are fundamental to financial accountability, providing independent assessment of public spending. 3. Social Audits involve public scrutiny of records and work, particularly for schemes like MGNREGA, to ensure transparency and community participation. 4. NITI Aayog, as the premier think tank of the Government of India, conducts performance reviews and evaluations of various government schemes and programs to assess their effectiveness and suggest improvements.
4. Which of the following statements correctly describes the 'demographic dividend' in the context of India?
- A.It refers to the economic benefits derived from a declining birth rate and an aging population.
- B.It is the potential economic growth that can result from shifts in a country's age structure, mainly when the share of the working-age population is larger than the non-working-age share.
- C.It signifies the challenges posed by a rapidly growing population on limited resources.
- D.It represents the increase in per capita income due to higher remittances from overseas workers.
Show Answer
Answer: B
Option B correctly defines demographic dividend. It is a period when a country's population has a relatively large proportion of working-age people (typically 15 to 64 years old) and a smaller proportion of dependents (children and elderly). This can lead to increased productivity, savings, and economic growth if the working-age population is healthy, educated, and gainfully employed. Options A, C, and D describe different demographic or economic phenomena.