Roadmap for Answer Writing

1. Introduction

• • Begin by introducing the role of the Comptroller and Auditor General (CAG) in the Indian Constitution (Articles 148–151).
  • Mention that the CAG ensures financial accountability of the executive to the Parliament through detailed audit reports.
  • State the significance of the CAG’s role in maintaining transparency and ensuring responsible financial management by the government.

2. Main Body

A. Powers and Functions of CAG

• Article 149: Defines CAG’s duties and powers, including auditing the accounts of the Union and States.
• Article 150: Outlines the form of accounts that need to be maintained for audit by the CAG.
• CAG’s Act (1971): Provides further clarification of the duties and powers of the CAG, defining its operational framework.
• Audit Types: Compliance Audit, Financial Audit, Performance Audit, Propriety Audit, etc.

B. Role of CAG Reports in Ensuring Accountability

• • Scrutiny of Government Finances: CAG reports provide an overview of the government’s financial health, including revenues, expenditures, and liabilities, allowing Parliament to scrutinize them effectively.
    • Example: The coal block allocation scam (2014) report highlighted irregularities, prompting judicial actions and cancellation of allocations.
  • Role of Public Accounts Committee (PAC): PAC examines CAG’s audit reports and questions the executive, ensuring follow-up on audit findings.
    • Example: PAC’s examination of the Rafale fighter jet deal report raised concerns and ensured accountability.
  • Performance Evaluation: The CAG assesses the efficiency and effectiveness of government programs, enabling the government and Parliament to improve governance.
    • Example: The 2021 GST report prompted reforms in the tax system.
  • Compliance Monitoring: The CAG ensures that the government adheres to financial regulations and avoids mismanagement.
  • Public Scrutiny and Transparency: CAG reports are publicly available, encouraging citizen involvement in governance and financial accountability.
    • Example: Reports on the 2G spectrum allocation and Commonwealth Games scam spurred public demands for accountability.

Conclusion

• • Conclude by emphasizing the CAG’s pivotal role in ensuring the executive’s financial accountability to Parliament.
  • Highlight how the CAG ensures transparency, helps identify inefficiencies, and provides necessary reforms to ensure the proper use of public funds.