In India, other than ensuring that public funds are used efficiently and for 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?
- 1, 3 and 4 only
- 2 only
- 2 and 3 only
- 1, 2, 3 and 4
Explanation
Statement 1 is incorrect
- The CAG does not exercise exchequer control on behalf of the Parliament during a national emergency or financial emergency.
Statement 2 is correct
- CAG reports are submitted to the President (or Governor in the case of states) and are later presented to the Parliament or State Legislatures. These reports are examined by the Public Accounts Committee (PAC), which scrutinizes the findings related to expenditures, projects, or programs executed by ministries.
Statement 3 is correct
- The findings of CAG reports often highlight irregularities, mismanagement, or violations of law in managing public funds. These reports can provide critical information for investigating agencies, such as the CBI or ED, to press charges against individuals or entities responsible for misusing public finances.
Statement 4 is incorrect
- The CAG does not have judicial powers to prosecute.
