Question

With reference to the powers and limitations of the CAG, consider the following statements:

i. The CAG can inspect any office or department subject to its audit and call for any records or documents.
ii. The CAG has control over fund withdrawals from the Consolidated Fund of India.
iii. The CAG cannot demand details of secret service expenditure and must accept a certificate from the competent authority.
iv. The CAG compiles and maintains the accounts of the Central Government.

Which of the statements given above are correct?

• A. Only (i and iii)
• B. Only (ii and iv)
• C. Only (i and ii)
• D. Only (iii and iv)

Answer 1

Answer:

A. Only (i and iii)

Comptroller and Auditor General (CAG) of India: Powers and Limitations

• Powers of Inspection and Audit: The CAG has the authority to inspect any office or department under its audit jurisdiction and demand any relevant records or documents. This power is crucial for ensuring transparency and accountability in government functioning. (Statement i is correct)
• Limitations on Fund Withdrawals: The CAG does not have control over fund withdrawals from the Consolidated Fund of India. Article 114 of the Constitution outlines the procedure for withdrawal of funds, which does not involve the CAG's prior approval. (Statement ii is incorrect)
• Audit of Secret Service Expenditure: While the CAG can scrutinize government spending, there are limitations regarding secret service expenditure. The CAG cannot demand minute details of such expenditures if they are deemed confidential by the competent authority. In such cases, the CAG generally accepts a certificate from the minister or head of department concerned regarding the expenditure. (Statement iii is correct)
• Maintenance of Accounts: The CAG compiles and maintains the accounts of the Central Government only if specifically requested by the President. As per Article 150 of the Constitution, the CAG advises the President on the form in which accounts are to be kept. Currently, the accounts of the Central Government are compiled and maintained by the Ministry of Finance. The CAG's primary role is to audit these accounts. (Statement iv is incorrect)
• Constitutional Basis: The CAG is an independent constitutional authority established under Article 148 of the Constitution of India. Its duties and powers are primarily governed by the CAG's (Duties, Powers and Conditions of Service) Act, 1971.
• Role in Public Finance: The CAG acts as the guardian of public finance and audits the accounts of both the Union and State governments, highlighting financial irregularities and inefficiencies to Parliament and State Legislatures.