Question

Consider the following statements about the CAG’s powers:

(i) The CAG has the authority to inspect any office or department subject to his/her audit.

(ii) The CAG can demand detailed accounts of secret service expenditure from executive agencies.

(iii) The CAG certifies the net proceeds of taxes and duties, and this certification is final.

Which of the statement(s) is/are NOT TRUE?

• A. Only (i)
• B. Only (ii)
• C. Only (iii)
• D. None of these

Answer 1

Answer:

B. Only (ii)

Comptroller and Auditor General of India (CAG) Powers and Functions

• Article 149 of the Constitution of India: Empowers the CAG to audit the accounts of the Union and of the States, and of any other body or authority specified by Parliament.

• Statement (i) - Inspection Authority: The CAG has the right to inspect any office or department that falls under his/her audit purview. This is a fundamental aspect of ensuring accountability and transparency in government functioning.

• Statement (ii) - Secret Service Expenditure: The CAG cannot demand detailed accounts of secret service expenditure from executive agencies. This is a specific limitation placed on the CAG's powers to protect national security and sensitive intelligence operations. While the CAG may audit such expenditure in a summarized form, the detailed breakdown is often kept confidential.

• Statement (iii) - Certification of Net Proceeds: The CAG certifies the net proceeds of any tax or duty, and this certification is generally considered final. This function is crucial for determining the share of revenue that goes to the Centre and the States.

• Key Role of CAG: The CAG acts as the guardian of the public purse, ensuring that public funds are spent efficiently, effectively, and in accordance with the law.

• Independence of CAG: The CAG is appointed by the President and can only be removed by impeachment, similar to a Supreme Court judge, ensuring their independence from the executive.

• Reports of CAG: The CAG submits audit reports to the President (for Union) and the Governor (for States), which are then laid before Parliament and State Legislatures, respectively. These reports are examined by Public Accounts Committees.