UPSC Prelims 2012 Q51: Indian Polity – Constitutional & Statutory Bodies
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?
- (a) 1, 3 and 4 only
- (b) 2 only
- (c) 2 and 3 only
- (d) 1, 2, 3 and 4
Answer: (c) 2 and 3 only
Explanation
Importance of the Comptroller and Auditor General (CAG)
| Statement | Verdict | Reason |
|---|---|---|
| 1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency | Incorrect | The CAG has no control over the issue of money from the exchequer, in an emergency or otherwise; in India he is only an auditor |
| 2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee | Correct | The Public Accounts Committee examines the audit reports |
| 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 | Correct | Audit findings are public records and can be used as leads and evidence |
| 4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law | Incorrect | The CAG has no judicial powers |
About the CAG:
| Point | Detail |
|---|---|
| Article | 148; reports under Article 151 |
| Term | 6 years or age 65, whichever is earlier |
| Called | 'Friend, philosopher and guide' of the Public Accounts Committee |
Answer: (c) 2 and 3 only.
Why each option is right or wrong
- (a) Incorrect. The CAG has no exchequer control and no judicial powers.
- (b) Incorrect. Statement 3 is also true; investigating agencies can use the reports.
- (c) CORRECT. The reports go to the Public Accounts Committee and can aid investigations.
- (d) Incorrect. Statements 1 and 4 are false; the CAG is an auditor, not a controller or judge.
Key point
CAG (Article 148): audits, reports to the President (Article 151), reports examined by the Public Accounts Committee; no control over issue of money, no judicial powers.
Remember
CAG = auditor only; reports go to the Public Accounts Committee.
Common mistakes
- Taking the word 'Comptroller' literally; in India the CAG does not control withdrawals.
- Thinking the CAG can prosecute; he only reports.
- Forgetting that audit reports become public once laid in Parliament.
Exam tip
The CAG audits after the money is spent. Any statement giving him control or court-like powers is wrong.
Sources
- Constitution of India — Articles 148 to 151
- Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971