Scope of Activities of the Comptroller and Auditor General of India

The Comptroller and Auditor General of India (CAG) plays a crucial role in ensuring financial accountability and transparency in government operations. The scope of its activities encompasses a wide range of responsibilities aimed at maintaining the integrity of public finances. Here’s an overview of its key functions and recent examples illustrating its scope:

1. Financial Audit of Central and State Governments

The CAG conducts financial audits of the accounts of the central and state governments, ensuring that public funds are used efficiently and as per legal provisions. This includes auditing the financial statements of various government departments and agencies.

Example: In the 2022-23 audit reports, the CAG highlighted discrepancies in the financial management of the Ministry of Health and Family Welfare related to the allocation and utilization of COVID-19 relief funds, leading to significant discussions on improving transparency and accountability in pandemic-related expenditures.

2. Performance Audit of Government Programs

The CAG performs performance audits to assess the efficiency and effectiveness of government programs and schemes. This involves evaluating whether the intended objectives of these programs are being met and if resources are being utilized optimally.

Example: The CAG’s performance audit in 2023 on the Pradhan Mantri Awas Yojana (PMAY) revealed delays and irregularities in the implementation of housing projects. This audit prompted reforms and corrective measures to enhance the scheme’s execution and accountability.

3. Compliance Audit

The CAG carries out compliance audits to ensure that government departments and agencies adhere to laws, regulations, and procedures in their financial operations. This helps in identifying instances of non-compliance and financial mismanagement.

Example: The 2024 audit of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) implementation reported non-compliance with financial management norms and discrepancies in wage payments, leading to calls for stricter adherence to guidelines and corrective action.

4. Audit of Public Sector Enterprises

The CAG is responsible for auditing the accounts of public sector enterprises (PSEs), including government-owned corporations and companies. This ensures that these enterprises operate efficiently and their financial reports are accurate.

Example: The 2023 audit of Air India revealed issues related to financial mismanagement and inefficiencies that impacted the airline’s operational performance and profitability. The audit findings influenced ongoing reforms and restructuring efforts.

5. Special Audits and Investigations

The CAG conducts special audits and investigations as directed by the President or the Parliament. These audits are often focused on specific issues or sectors where there are concerns about financial irregularities or mismanagement.

Example: The CAG’s special audit on the National Highways Authority of India (NHAI) in 2023 investigated the irregularities in toll collections and maintenance contracts, leading to recommendations for improving oversight and operational efficiency.

6. Reporting to Parliament

The CAG submits its audit reports to the Parliament, which are then reviewed by the Public Accounts Committee (PAC) and other committees. This ensures that audit findings are discussed and addressed by the legislative body, promoting accountability.

Example: The CAG’s 2024 report on defense procurement was extensively discussed in Parliament, highlighting procurement inefficiencies and delays in the acquisition of critical defense equipment, leading to policy revisions and increased scrutiny.

7. Advisory Role

Although primarily an auditing body, the CAG also provides advisory services on financial management practices and improvements in the accounting systems of various government entities. This role supports better financial governance and transparency.

Example: In 2024, the CAG issued advisory guidelines to enhance the e-governance initiatives across state governments to streamline financial transactions and improve public service delivery.

In summary, the scope of activities of the Comptroller and Auditor General of India includes comprehensive financial, performance, and compliance audits of government operations, auditing public sector enterprises, conducting special investigations, reporting to Parliament, and providing advisory services. These functions are critical for maintaining financial discipline, accountability, and transparency in the management of public resources.