Indian Polity : Parliament

Q 30 / 51

UPSC CSE Prelims 2012

In India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)?

  1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.
  2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.
  3. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
  4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?

EXPLANATION

The correct option is 2 and 3 only.

Explanation

The Comptroller and Auditor General (CAG) of India is a constitutional authority responsible for auditing the accounts of the Union and State governments and ensuring accountability in the use of public funds.

  • Statement 1: Incorrect.
    The CAG does not exercise exchequer control on behalf of Parliament during a national or financial emergency. Exchequer control refers to the control over withdrawal and use of funds from the Consolidated Fund, which is exercised through legislative approval and executive financial administration.
  • Statement 2: Correct.
    Reports of the CAG on the accounts and performance of ministries and government departments are examined by the Public Accounts Committee (PAC) of Parliament, which reviews financial irregularities and ensures accountability.
  • Statement 3: Correct.
    Information contained in CAG audit reports can be used by investigative agencies to identify financial irregularities and initiate legal proceedings where violations of law in the management of public finances are detected.
  • Statement 4: Incorrect.
    The CAG does not possess judicial powers to prosecute individuals. Its role is limited to auditing and reporting irregularities; prosecution is undertaken by appropriate legal or investigative authorities.

Key Takeaway: The CAG functions as an independent auditor of government finances whose reports are examined by Parliament and can form the basis for further investigation into financial irregularities.

SOURCEIndian Polity by M. Laxmikanth, Chapter 45: Comptroller and Auditor General of India