Answer

The Comptroller and Auditor General (CAG) of India’s mandate, under Article 148 of the Constitution extends beyond merely ensuring the legality of government expenditure to also examining its propriety. It suggests that the CAG also has the responsibility of ensuring that public money is spent not just legally (Legality of Expenditure) but appropriately, prudently, and for the intended purpose (Propriety of Expenditure).

Ensuring Legality of Expenditure

• Constitutional and Statutory Mandate: The CAG is constitutionally mandated to audit expenditures from the Consolidated Fund of India, ensuring they align with legal provisions under Article 266.
• Audit Reports: The CAG publishes annual audit reports evaluating the financial and operational integrity of government programs.
  For example: The CAG’s audit of the MGNREGA highlighted gaps in implementation and resource utilisation.
• Compliance with Laws and Regulations: Ensuring that government transactions comply with statutory requirements, including tax laws like the Goods and Services Tax (GST).
  For instance: The CAG audit of GST compliance in various government departments ensures adherence to the tax regulations.
• Financial Oversight: Regular financial assessments by the CAG ensure that government sectors, especially in sensitive areas like defence, manage their finances responsibly. It also plays a crucial role in detecting mismanagement of public funds and bringing corruption to light
  For example: The CAG’s audit of the Commonwealth Games (2010) uncovered procurement irregularities, leading to high-profile investigations.
• Ensuring Public Accountability: CAG findings are often reviewed by the Public Accounts Committee (PAC), ensuring that government actions are held accountable.
  For example: The CAG’s findings in the 2G spectrum case led to significant PAC deliberations and legal actions against involved parties.

Ensuring Propriety of Expenditure

• Value for Money Audits: The CAG ensures that government programs deliver value for public money through effective audits of major projects.
  For example: The audit of the Clean Ganga Mission assessed whether allocated funds were used efficiently and yielded expected environmental outcomes.
• Ethical Standards: The CAG ensures that discretionary government expenditures, particularly those by ministers, meet ethical standards.
  For example: The CAG’s audit of discretionary spending by Ministers ensures that funds are used ethically.
• Transparency in Spending: Ensuring transparency in government spending is one of the key roles of the CAG, with audit results being made public for scrutiny.
  For example: The CAG’s audit findings related to Delhi Metro Rail Corporation were published online to ensure public access to transparency in spending.
• Advisory Role: The CAG offers advisory services to government bodies, helping them make better policy decisions based on audit findings.
  For example: The CAG’s recommendations to the Railway Board on fare pricing.
• Safeguarding Public Interest: The CAG ensures that public sector undertakings (PSUs) are managed efficiently to prevent wastage of resources.
  For example: The CAG’s audit of Air India identified financial mismanagement, ensuring corrective measures were taken to avoid further losses.
• International Standards: The CAG adheres to International Standards of Supreme Audit Institutions (INTOSAI), ensuring that its audits are in line with global practices.

The Comptroller and Auditor General plays a vital role in maintaining financial accountability and ensuring that public funds are used lawfully and efficiently. As Dr. B.R. Ambedkar stated, “The CAG is the most important officer under the Constitution of India,” safeguarding public resources through legal scrutiny and ethical audits to promote economic stability and transparency in governance.