QUESTION

Medium

Indian Polity

Prelims 2012

In India, other than ensuring that public funds are used efficiently and for the 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?

Select an option to attempt

Explanation

  1. Incorrect The CAG does not exercise direct control over government spending.

  2. Correct The CAG's reports are a crucial source of information for the Public Accounts Committee (PAC), a parliamentary committee that scrutinizes government spending. The PAC uses CAG reports to identify areas of inefficiency or waste and hold government departments accountable.

  3. Correct CAG reports can uncover financial irregularities or misuse of funds. Law enforcement agencies can use this information to investigate and prosecute those responsible.

  4. Incorrect The CAG does not have judicial powers to prosecute offenders. However, it can recommend disciplinary action or further investigation.

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