Regulation 23 — Audit Regulations 2020
Original Rule Text
What This Means
The CAG's audit of expenditure and receipts extends beyond core government departments to any body or authority prescribed by Parliament or State Legislature. This includes audit of all transactions connected to the Consolidated Fund — for example, revenue-sharing arrangements. For receipts, it covers both revenue and capital receipts including tax revenue, non-tax revenue (license fees, royalties, revenue shares), disinvestment proceeds, and borrowings. The CAG has the right to access the books of accounts of service providers to verify the government is receiving its legitimate share.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG's audit extends to any body or authority prescribed by law, not just those under Article 12
- 2Covers all transactions with a nexus to the Consolidated Fund, including revenue-sharing arrangements
- 3Receipt audit covers both capital receipts (disinvestment, borrowings) and revenue receipts (tax + non-tax)
- 4Non-tax receipts include license fees, royalty, premium, usage charges, revenue/production/profit shares
- 5CAG can access books of service providers to verify government's rightful share of revenue
- 6Orders involving land grants, mineral rights, forest rights, or revenue relinquishment are within audit purview
Practical Example
The CAG conducts an audit of spectrum allocation by the Department of Telecommunications. Under Regulation 23(5), the audit team accesses the financial records of telecom operators to verify that the license fees and spectrum usage charges paid to the government match what is legitimately due under the revenue-sharing arrangement. This was the basis for landmark audit reports like the 2G spectrum allocation audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the CAG audit private companies that have revenue-sharing arrangements with the government?▼
Does audit of receipts cover only income tax and GST?▼
Are land grants and mineral rights concessions subject to CAG audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.