Exercise of CAG’s powers in relation
to the accounts of the Union and the
States is derived from Article 149 of
the Indian Constitution. Discuss
whether an audit of the Government’s
policy implementation could amount
to overstepping its own (CAG)
jurisdiction.

GS 2

Indian Polity

2016

12.5 Marks

Article 149 empowers the Comptroller and Auditor General (CAG) to audit Union and State accounts, but policy implementation audits raise important jurisdictional questions that require constitutional analysis.

Constitutional Framework Under Article 149

Primary Mandate: Article 149 grants CAG powers to audit government accounts and prescribe audit forms
Statutory Support: CAG's (Duties, Powers and Conditions of Service) Act, 1971 elaborates comprehensive audit functions
Supreme Court Validation: Association of Unified Teleservices Providers v. Union of India (2014) affirmed CAG's authority for performance audits
Parliamentary Oversight: Article 151 mandates submission of audit reports to President/Governor for legislative scrutiny
Constitutional Independence: Articles 148-151 ensure CAG's autonomy in audit functions

Arguments Against Policy Implementation Audit

Separation of Powers: Policy formulation is executive prerogative; audit may blur constitutional boundaries
Democratic Legitimacy: Elected executives make policy decisions; unelected CAG shouldn't evaluate policy wisdom
Judicial Precedent: State of Kerala v. CAG (1998) emphasized CAG's role in financial propriety, not policy evaluation
Administrative Overreach: Performance audits may encroach upon executive decision-making domain
Political Neutrality: Policy audits risk drawing CAG into political controversies

Arguments Supporting Policy Implementation Audit

3E Framework: CAG examines Economy, Efficiency, and Effectiveness of policy execution, not policy merit
Public Accountability: Performance audits ensure taxpayer money achieves intended outcomes
Constitutional Duty: Article 149 empowers CAG to prescribe audit forms, including performance evaluation
Parliamentary Tool: PAC relies on CAG reports for effective legislative oversight
Recent Examples: CAG's 2G spectrum audit (2010) and coal block allocation audit (2014) exposed implementation failures

Aspect	Within Jurisdiction	Overstepping Jurisdiction
Focus	Implementation effectiveness	Policy wisdom/formulation
Approach	Objective measurement	Subjective evaluation
Scope	Financial propriety + performance	Political decision-making

The CAG's policy implementation audits remain within constitutional bounds when focusing on execution efficiency rather than policy wisdom. This maintains democratic accountability while respecting the separation of powers principle established in the Constitution.

Answer Length

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