Question

Which of the following statements about the CAG’s role and constitutional provisions is/are correct?

i. The CAG is described as the guardian of the public purse by Dr. B.R. Ambedkar.

ii. The duties and powers of the CAG are prescribed under Article 148 of the Constitution.

iii. The CAG submits three audit reports to the President, which are examined by the Public Accounts Committee.

iv. The CAG audits the accounts of all corporations without requiring statutory provisions.

• A. i and iii only
• B. i, ii, and iii
• C. ii and iv only
• D. i, iii, and iv

Answer 1

Answer:

A. i and iii only

Comptroller and Auditor General (CAG) of India

• Guardian of the Public Purse: Dr. B.R. Ambedkar famously described the CAG as the most important officer in the Constitution of India, acting as the guardian of the public purse. This highlights the CAG's crucial role in overseeing public expenditure and ensuring financial accountability.

• Constitutional Provisions:

  • Article 148: This article provides for the appointment, oath, and conditions of service of the CAG. It establishes the office as an independent constitutional authority.

  • Article 149: Defines the duties and powers of the CAG, empowering the CAG to audit government accounts.

  • Article 150: Stipulates that the accounts of the Union and of the States shall be kept in such form as the CAG may, with the approval of the President, prescribe.

  • Article 151: Mandates that the reports of the CAG relating to the accounts of the Union or of a State shall be submitted to the President or the Governor, respectively.

• Audit Reports: The CAG submits three distinct audit reports to the President:

  • Report on Appropriation Accounts: This report scrutinizes how funds allocated by Parliament have been spent.

  • Report on Finance Accounts: This report presents the overall financial position of the Union Government.

  • Report on Public Sector Undertakings: This report covers the audit of government companies and corporations.

  These reports are then laid before both Houses of Parliament (or the State Legislature) and are meticulously examined by the Public Accounts Committee (PAC). The PAC plays a vital role in holding the executive accountable for public spending based on the CAG's findings.

• Scope of Audit: The CAG audits the accounts of all government companies and corporations established by an Act of Parliament, even without specific statutory provisions, under the provisions of the Companies Act, 1956 (now Companies Act, 2013). However, for other corporations, the CAG's audit jurisdiction is generally based on statutory provisions. The statement that the CAG audits all corporations without requiring statutory provisions is incorrect as it is not universally applicable.