Roadmap for Answer Writing
1. Introduction
- Define the role of the Comptroller and Auditor General (CAG) in India.
- Introduce the statement highlighting the dual responsibility of ensuring legality and propriety in expenditure.
2. Legality of Expenditure
- Explain the CAG’s primary function of auditing government accounts to ensure legal compliance.
- Fact: The CAG operates under Article 149 of the Indian Constitution, which mandates the auditing of government accounts (Constitution of India, 1950).
- Example: Reference the CAG report on the 2019-20 Union Government Accounts, which pointed out discrepancies in fund allocation.
3. Propriety of Expenditure
- Discuss the broader responsibility of the CAG to assess whether expenditures are appropriate and beneficial.
- Fact: Propriety involves examining efficiency, economy, and effectiveness, ensuring funds are used for intended purposes.
- Example: Mention the CAG’s Performance Audit of the National Rural Health Mission, which revealed inefficiencies in the utilization of funds (CAG Performance Audit Report, 2021).
4. Importance of Propriety in Governance
- Highlight why propriety is essential for accountability and transparency in public spending.
- Fact: The Right to Information Act (2005) enhances transparency, allowing citizens to monitor government expenditure.
- Example: Discuss how social audits in schemes like MGNREGA have uncovered mismanagement (Section 17 of the MGNREGA Act).
5. Consequences of Neglecting Propriety
- Explain the potential risks of focusing solely on legality, such as resource wastage and public distrust.
- Example: Cite instances where legal expenditures led to ineffective programs, undermining public welfare.
6. Conclusion
- Summarize the critical roles of the CAG in ensuring both legality and propriety.
- Reiterate the importance of a holistic approach to auditing for effective governance and public accountability.
Relevant Facts for the Answer
- CAG’s Constitutional Mandate: Article 149 of the Indian Constitution establishes the CAG’s role in auditing government accounts.
- CAG Report on Union Government Accounts (2019-20): Highlight discrepancies in fund allocation.
- Performance Audit of National Rural Health Mission: Shows inefficiencies in fund utilization (CAG Performance Audit Report, 2021).
- Right to Information Act (2005): Promotes transparency in government spending.
- Social Audits in MGNREGA: Exposed fund mismanagement, enhancing accountability.
By following this roadmap, you can construct a comprehensive answer that effectively addresses the responsibilities of the CAG regarding both legality and propriety in government expenditure.
Model Answer
Introduction
The statement that “the duty of the Comptroller and Auditor General (CAG) is not merely to ensure the legality of expenditure but also its propriety” underscores the comprehensive responsibilities of this constitutional authority in India. The CAG plays a crucial role in maintaining financial accountability and transparency in government spending.
Legality of Expenditure
The CAG’s primary function, as outlined in Article 149 of the Indian Constitution, is to audit government accounts to ensure that expenditures are legal. This involves verifying that public funds are utilized in accordance with the laws and regulations established by Parliament. For instance, the CAG’s report on the 2019-20 Union Government Accounts highlighted instances of misallocation of funds, emphasizing the necessity for strict adherence to legal frameworks.
Propriety of Expenditure
Beyond legality, the CAG is tasked with assessing the propriety of expenditures. This means evaluating whether the funds were used efficiently, economically, and for their intended purposes. Propriety ensures that expenditures not only comply with legal standards but also align with the principles of good governance. For example, the CAG’s Performance Audit of the National Rural Health Mission revealed significant inefficiencies and mismanagement, indicating that the intended objectives were not being achieved effectively.
Importance of Propriety
Focusing on propriety is essential for fostering accountability and public trust in government institutions. It ensures that taxpayers’ money is spent judiciously and that government programs deliver the intended benefits. If expenditures are legal but not proper, it can lead to wastage of resources and undermine public welfare.
Conclusion
In conclusion, the CAG’s duty extends beyond ensuring legal compliance to encompass the broader aspect of propriety in expenditure. By ensuring both legality and propriety, the CAG plays a vital role in safeguarding public funds and promoting good governance in India. This dual focus is critical for enhancing the effectiveness of government programs and ensuring accountability to the citizens.