Para 7.3.2 — The CAG's Reports broadly draw attention to: exces

7.3.2 Generally, the Reports of the Comptroller and Auditor General of India draw attention to the following:

(i) Matters arising from the Appropriation Accounts, the more important among them being:

(a) instances of expenditure incurred in excess of voted grants and charged appropriations, requiring regularisation;

(b) cases of expenditure incurred on a ‘New Service’ or ‘New Instrument of Service’ without the specific authority of the Parliament/Legislature;

(c) observations relating to efficiency of budgeting and control over expenditure; and

(d) recurring instances of major savings and excesses.

(ii) Points of interest concerning the Finance Accounts. The Reports will also include comprehensive review

(s) on one or more of the following topics:

(a) Budgetary deficit.

(b) Public debt.

(c) Investments by Government.

(d) Cash management.

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Note: The topics mentioned are only illustrative and not exhaustive.

(iii) Results of audit of all expenditure from the Consolidated Fund (including expenditure on commercial and trading activities of Government departments) and of the accounts of stores and stock. Where necessary, the Report also deals with the adequacy or otherwise of the rules and regulations in force for the conduct of financial transactions and for ensuring their regularity and propriety.

(iv) Observations arising from comprehensive reviews of various schemes and programmes implemented launched by the Union, State and Union Territory Governments.

(v) Important cases of losses and write-off of Government dues, and of wasteful or nugatory expenditure.

(vi) Points arising from audit under Section 16 of the Act of all receipts payable into the Consolidated Fund.

(vii) Matters relating to Government Companies, deemed Government Companies, and statutory and other autonomous bodies, the accounts of which are audited under Section 19 of the Act.

(viii) Points arising from audit under Section 14 of the Act of receipts and expenditure of bodies or authorities substantially financed by grants or loans from the Consolidated Fund.

(ix) Results of audit under Sections 19(2) and 19(3) of the Act of the accounts of Corporations established by or under laws made by Parliament or State Legislatures respectively, and also of any body or authority, the audit of the accounts of which has been entrusted to the Comptroller and Auditor General under Section 20 of the Act.

(x) Points arising from audit under Section 13

(b) of the Act of all transactions relating to Contingency Funds and Public Accounts.

(xi) Results of audit of all trading, manufacturing, profit and loss accounts and balance sheets and other subsidiary accounts maintained in any department under Section 13

(c) Act.

(xii) Any other matter of interest from the efficiency, financial or accounting points of view which the Comptroller and Auditor General considers necessary to bring to the notice of the Parliament/Legislature.

What This Means

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Key Points

• 1Highlights excess expenditure requiring legislative regularisation
• 2Flags 'New Service' expenditure without specific parliamentary authority
• 3Covers budgeting efficiency, Finance Accounts, public debt, and cash management
• 4Includes scheme/programme reviews, losses, and wasteful expenditure
• 5Reports on revenue receipts, government companies, autonomous bodies, and Contingency/Public Accounts
• 6CAG has broad discretion to include any matter of financial interest

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

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