Prelims 2012 · Polity and Constitution · Question 51
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)?<br/>1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.<br/>2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.<br/>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.<br/>4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.<br/><br/>Which of the statements given above is/are correct?
Answer
2 and 3 only
1. Incorrect. CAG does not exercise exchequer control on behalf of Parliament during national or financial emergency. In India, unlike the British system, CAG is primarily an auditor, not a controller of withdrawals from the Consolidated Fund.
2. Correct. CAG’s audit reports on ministries, schemes and projects are examined by the Public Accounts Committee (PAC) of Parliament.
3. Correct. CAG reports can reveal financial irregularities and loss to the exchequer; such findings may be used by investigative agencies as evidentiary material for further action.
4. Incorrect. CAG has no judicial or prosecutorial powers. Even in relation to government companies, CAG’s role is audit/supplementary audit and reporting, not prosecution.
Hence, statements 2 and 3 only are correct.