Question

Consider the following statements about the CAG’s audit reports:

(i) The CAG submits audit reports on state accounts to the President for presentation to the state legislature.

(ii) The Public Accounts Committee examines the CAG’s audit reports and reports its findings to Parliament.

(iii) No Minister can represent the CAG in Parliament.

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:

A. Only (i)

Comptroller and Auditor General (CAG) of India

• Constitutional Mandate: The CAG is an independent constitutional authority established under Article 148 of the Indian Constitution. The Constitution vests the CAG with the power to audit all receipts and expenditures of the Union Government, State Governments, and public sector undertakings.

• Audit Reports: The CAG submits several key audit reports:

  • Audit Report on Appropriation Accounts: This report deals with the expenditure of the government.

  • Audit Report on Finance Accounts: This report pertains to the financial position of the government.

  • Audit Report on Public Undertakings: This report covers the financial management of government-owned enterprises.

• Presentation of Reports:

  • Reports relating to the accounts of the Union Government are submitted to the President, who causes them to be laid before both Houses of Parliament (Article 151(1)).

  • Reports relating to the accounts of a State Government are submitted to the Governor of that State, who causes them to be laid before the Legislature of that State (Article 151(2)).

• Examination of Reports:

  • The audit reports of the CAG are examined by the Public Accounts Committee (PAC) of Parliament (for Union reports) and the Public Accounts Committees of the respective State Legislatures (for State reports).

  • The PAC, a parliamentary committee, scrutinizes the reports and provides recommendations to Parliament.

• CAG's Representation: The CAG is an independent constitutional officeholder. No Minister can represent the CAG in Parliament. The CAG, or a person authorized by the CAG, may be called upon to provide clarifications or explanations regarding the audit reports, but this representation is directly from the office of the CAG, not through a government minister.

• Key takeaway for exams: It is crucial to remember the specific articles related to the CAG's appointment, duties, and the procedure for presenting audit reports to Parliament and State Legislatures. The role of the PAC in scrutinizing these reports is also a frequently tested area.