Question

Assertion (A): The CAG cannot audit secret service expenditure and must accept a certificate from the competent authority as proof of legal expenditure.

Reason (R): Secret service expenditure is exempt from CAG audit to protect national security and confidentiality.

Select the correct answer code:

• A. Both (A) and (R) are true and (R) is the correct explanation of (A)
• B. (A) is true but (R) is false
• C. (A) is false but (R) is true
• D. None of the above

Answer 1

Answer:

A. Both (A) and (R) are true and (R) is the correct explanation of (A)

Role of the Comptroller and Auditor General (CAG) in India

• The CAG of India is a constitutional authority appointed by the President under Article 148 of the Constitution.

• The CAG audits all expenditures from the Consolidated Fund of India and of each State and Union Territory with legislature.

• The CAG's reports are submitted to the President, who causes them to be laid before Parliament.

Audit of Secret Service Expenditure

• Article 116 of the Constitution deals with appropriation of money for services, the expenditure on which is charged on the Consolidated Fund of India.

• While the CAG has a broad mandate to audit government expenditure, there's a specific exemption for secret service expenditure.

• This exemption is rooted in the principle of protecting national security and maintaining confidentiality of sensitive operations.

• The CAG cannot audit the details of secret service expenditure directly. Instead, a certificate from the competent authority responsible for sanctioning such expenditure is generally accepted as proof of its legality and propriety.

• This provision is crucial for the effective functioning of intelligence agencies and other bodies involved in national security.

• Key Point for Exams: Despite the exemption from detailed audit, the CAG can still scrutinize the overall budgetary allocation and the system of control over secret service funds.