Q4. “The duty of the Comptroller and Auditor General is not merely to ensure the legality of expenditure but also its propriety.” Comment. (Answer in 150 words)
Kartavya Desk Staff
Introduction:
I am of the opinion that this dignitary or officer is probably the most important officer in the Constitution of India. He is the one man who is going to see that the expenses voted by Parliament are not exceeded, or varied from what has been laid down by Parliament in the Appropriation Act.” —Dr. B.R Ambedkar
Body:
Article 148 broadly deals with the CAG appointment, oath and conditions of service. Article 149 deals with Duties and Powers of the Comptroller and Auditor-General of India.
• Ensuring Legality of Expenditure: The CAG ensures that government expenditures conform to the laws enacted by Parliament and the respective state legislatures. Objective: To ensure that public money is spent within the boundaries set by law and that no irregularities occur in the disbursement of funds. Example: CAG Report on Defence Acquisition: The CAG scrutinized procurement processes for equipment, pointing out irregularities in contracts and deviations from standard procurement norms.
• Objective: To ensure that public money is spent within the boundaries set by law and that no irregularities occur in the disbursement of funds.
• Example: CAG Report on Defence Acquisition: The CAG scrutinized procurement processes for equipment, pointing out irregularities in contracts and deviations from standard procurement norms.
• Ensuring Propriety of Expenditure: Beyond legality, propriety involves assessing whether government expenditure is justified, necessary, and serves the intended public interest. The CAG examines whether the money spent yields value and adheres to principles of financial prudence. Objective: To ensure that expenditures not only follow legal procedures but also adhere to high standards of efficiency and economy, avoiding wasteful or extravagant spending. Example: CAG Report on Ayushman Bharat: The CAG identified concerns related to fund management and questioned the propriety of certain expenditures, such as overpricing of services under the scheme.
• Objective: To ensure that expenditures not only follow legal procedures but also adhere to high standards of efficiency and economy, avoiding wasteful or extravagant spending.
• Example: CAG Report on Ayushman Bharat: The CAG identified concerns related to fund management and questioned the propriety of certain expenditures, such as overpricing of services under the scheme.
Propriety Audit – Importance and Scope:
• Efficient Use of Public Funds: The propriety audit assesses whether the funds allocated by the government have been spent prudently, delivering maximum benefit to the public.
• Check on misuse of Discretionary Powers: The CAG checks whether discretionary powers vested in government officers are used responsibly and not arbitrarily to approve unnecessary expenditures. Example: CAG Audit of MGNREGA: The CAG raised issues over delays in fund transfer and improper utilization of funds meant for rural employment, questioning the efficiency of fund usage.
• Example: CAG Audit of MGNREGA: The CAG raised issues over delays in fund transfer and improper utilization of funds meant for rural employment, questioning the efficiency of fund usage.
• Preventing Wasteful Expenditure: The CAG ensures that expenditures offer value for money and are not wasteful or excessive. It examines the necessity and utility of expenditures, even if they are legally sanctioned.
• Curbing Extravagance: By assessing the justification of expenses, the CAG ensures that public funds are not used for purposes that provide little or no benefit to the public. Example: CAG Report on Public Sector Banks: The report highlighted inefficiencies in the recapitalization of public sector banks and questioned the propriety of certain fund allocations that failed to achieve the desired outcomes.
• Example: CAG Report on Public Sector Banks: The report highlighted inefficiencies in the recapitalization of public sector banks and questioned the propriety of certain fund allocations that failed to achieve the desired outcomes.
• Enhanced Government Accountability: By ensuring both legality and propriety, the CAG holds the government accountable for its spending decisions, ensuring transparency and responsible governance.
• Promoting Public Trust: The focus on propriety strengthens public confidence in the government’s financial practices, ensuring that taxpayers’ money is spent judiciously. Example: CAG Audit of PM CARES Fund: The audit emphasized the need for transparency in the allocation of resources, raising concerns over how effectively the funds were utilized.
• Example: CAG Audit of PM CARES Fund: The audit emphasized the need for transparency in the allocation of resources, raising concerns over how effectively the funds were utilized.
Conclusion:
This dual responsibility is crucial for maintaining transparency, accountability, and efficiency in public financial management. By examining both the legal and prudent use of resources, the CAG ensures that government spending serves the public interest while avoiding waste and inefficiency.