Recently 14 pending CAG reports on the previous AAP government in Delhi were  tabled in the Delhi Assembly.

• These reports were submitted to the L-G years ago but were not presented in the Assembly by the AAP government.
• The reports include audits on:
  • Delhi excise policy (2021-22) with an estimated ₹2,002 crore revenue loss.
  • Renovation costs of former CM Arvind Kejriwal’s residence.
  • Liquor supply in Delhi.
  • Prevention and mitigation of air pollution.
  • Functioning of Delhi Transport Corporation (DTC).

About Reports of Comptroller and Auditor General of India (CAG)

Constitutional Provisions

• Article 151: CAG submits audit reports on Central accounts to the President, who presents them before Parliament.
  • CAG submits audit reports on State accounts to the Governor, who presents them before the State Legislature.
• The Public Accounts Committee (PAC) examines selected reports, seeks government responses, and requests an Action Taken Report.

Types of Audits Conducted by CAG

• Compliance Audit: Checks adherence to laws, rules, and regulations.
• Performance Audit: Assesses the effectiveness of government schemes and programs.
• Financial Audit: Certifies government accounts and Public Sector Undertakings (PSUs).

Selection Process for CAG Audits

• Risk-Based Assessment: CAG selects audit subjects based on project size, media reports, and past inspections, ensuring audits focus on high-impact areas.
• Annual Audit Plan and Advisory Board: CAG follows International Organization of Supreme Audit Institutions, or INTOSAI guidelines and consults the Audit Advisory Board, which meets twice a year to refine subjects and methodologies.
• Government and Court Recommendations: Authorities like the Supreme Court can direct audits, as seen in the Delhi-Noida Direct (DND) flyover audit.

Limitation of CAG reports

• No time limit is specified for tabling reports, causing delays.
• A CAG report becomes public only after being laid in the House.
• CAG cannot prosecute individuals violating the law.
  • But its reports can be used by investigating agencies to press charges.

Apart from auditing, CAG also

• Maintains state government accounts.
• Provides pension authorization for state employees.
• Manages General Provident Fund (GPF) accounts.

Constitutional Provisions Related to CAG

• Appointment: The CAG is appointed by the President through a warrant under his hand and seal.
• Salary and Service Conditions: Determined by Parliament.
• Expenditure: Entire expenses, including salaries, allowances, and pensions, are charged upon the Consolidated Fund of India (CFI).
• Article 150: The form of Union and State accounts is prescribed by the President on the advice of the CAG.
• Article 279: CAG ascertains and certifies the net proceeds of any tax or duty, and the certificate is final.
  • Net proceeds refer to the revenue collected from a tax or duty minus the cost of collection.

Legal Provisions

• Comptroller and Auditor General of India (Duties, Powers, and Conditions of Service) Act, 1971 defines the powers and responsibilities of the CAG.
• Tenure: The CAG holds office for six years or until the age of 65 years, whichever is earlier.
• Resignation: The CAG can resign at any time by submitting a letter to the President.
• Removal: The CAG can be removed by the President, following the same procedure as a Supreme Court judge.
• Service Conditions: The salary and service conditions of the CAG cannot be altered to his disadvantage after appointment.

Other Statutes granting powers to CAG

• The Fiscal Responsibility and Budget Management Act, 2003, says the Central Government may entrust the CAG to “review periodically as required, the compliance of the provisions of this Act and such reviews shall be laid on the table of both Houses of Parliament”.