UPSC Prelims 2012 · Question 51 of 98
UPSC Prelims 2012 question on Comptroller Auditor General Importance
- ExamUPSC CSE
- Year2012
- PaperGeneral Studies Paper I
- SubjectPolity
- TopicConstitutional Bodies
- DifficultyMedium
- TypeStatement
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 Parliament when emergency is declared.
2. CAG reports are discussed by the Public Accounts Committee.
3. Information from CAG reports can be used by investigating agencies.
4. CAG has judicial powers for prosecuting offenders.
Which of the statements given above is/are correct?
Show answer
Answer: C. 2 and 3 only
Verdict
Correct Answer: 2 and 3 only
Analysis
The Comptroller and Auditor General of India is a constitutional authority responsible for auditing public expenditure.
Its role is mainly audit-based and advisory; it does not exercise executive, judicial or prosecuting powers.
Statement by statement
1. CAG exercises exchequer control on behalf of Parliament when the President of India declares national emergency/financial emergency — Incorrect
The CAG does not control withdrawal of money from the Consolidated Fund.
Its role is post-facto audit, not pre-audit or exchequer control. It checks whether public money was spent legally, efficiently and for the intended purpose.
2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee — Correct
CAG submits audit reports to the President or Governor, who places them before Parliament or State Legislature.
The Public Accounts Committee examines these reports and the CAG assists the committee in financial scrutiny.
3. Information from CAG reports can be used by investigating agencies to frame charges against those who have violated the law while managing public finances — Correct
CAG reports can highlight financial irregularities, losses or misuse of public funds.
Investigating agencies may use such findings for further investigation and legal action, though the CAG itself does not prosecute.
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 or prosecution powers.
It can audit and report irregularities, but punishment or prosecution is done by courts or competent investigating agencies.
Extra UPSC info
* CAG is provided under Articles 148 to 151 of the Constitution.
* Dr. B.R. Ambedkar called the CAG one of the most important officers under the Constitution.
* CAG audits the accounts of the Union, States and certain public sector bodies.
* CAG is removed in the same manner and on the same grounds as a Supreme Court judge.
* Article 150 says that the form of accounts of the Union and States is prescribed by the President on the advice of the CAG.
* CAG is known as the guardian of the public purse, but it is not a court or investigating agency.
How to crack it
CAG strengthens financial accountability through audit reports and assistance to PAC, but it does not control fund withdrawal or prosecute offenders.