In India, other than ensuring that public funds are used efficiently and for the intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)?
- CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.
- CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.
- Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
- While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?
Detailed Explanation:
❌ Statement 1 – Incorrect: CAG does not exercise exchequer control during national/financial emergency; it performs audit functions independently under Article 148-151, not executive control over funds.
✅ Statement 2 – Correct: CAG reports on execution of projects/programmes are examined by the Public Accounts Committee (PAC), which scrutinizes government expenditure based on these audit findings.
✅ Statement 3 – Correct: Information from CAG audit reports can be used by investigating agencies (CBI, ED) as evidence to initiate action against those who misused public funds or violated financial laws.
❌ Statement 4 – Incorrect: CAG has no judicial powers to prosecute; it is an audit body that reports irregularities but cannot conduct prosecutions or impose penalties.
Question 2 of 2 Comptroller and Auditor General
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