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)? 1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency. 2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee. 3. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances. 4. 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?
- A1, 3 and 4 only
- B2 only
- C2 and 3 onlyCorrect
- D1, 2, 3 and 4
Explanation
Statement 1 is incorrect because the CAG does not exercise exchequer control. In India, the executive can withdraw money from the Consolidated Fund without prior approval from the CAG. Control over the exchequer lies with the Parliament, not the CAG, regardless of an emergency.
Statement 2 is correct because the CAG submits audit reports to the President, who lays them before Parliament. These reports are then examined by the Public Accounts Committee to ensure executive accountability.
Statement 3 is correct because CAG reports serve as credible evidence of financial irregularities. Investigating agencies like the CBI or police can use the findings in these reports to frame charges and prosecute offenders.
Statement 4 is incorrect because the CAG is an auditing and accounting body, not a judicial one. It has no powers to prosecute or punish individuals; it can only report findings to the legislature or refer matters to competent authorities.
Therefore, only statements 2 and 3 are correct, making option C the right answer.
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