{"id":151960,"date":"2025-01-18T19:40:13","date_gmt":"2025-01-18T14:10:13","guid":{"rendered":"https:\/\/pwonlyias.com\/stage\/?post_type=current-affairs&#038;p=151960"},"modified":"2025-01-20T14:24:50","modified_gmt":"2025-01-20T08:54:50","slug":"comptroller-and-auditor-general","status":"publish","type":"current-affairs","link":"https:\/\/pwonlyias.com\/stage\/current-affairs\/comptroller-and-auditor-general","title":{"rendered":"Comptroller and Auditor General (CAG)"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The Delhi high court has recently censured the state government for its<\/span><b> failure to place 14 reports <\/b><span style=\"font-weight: 400;\">of the Comptroller and Auditor General (CAG) before the<\/span><b> legislative assembly.\u00a0<\/b><\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">The government is obligated to present these reports before the assembly for discussion. This ensures public funds are utilized effectively and transparently.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>About the office of Comptroller and Auditor General (CAG)<\/b><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Comptroller and Auditor General (CAG) is a constitutional authority responsible for auditing and reporting on the financial operations of the government at the Union and State levels.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Established under <\/span><b>Article 148<\/b><span style=\"font-weight: 400;\"> of the Indian Constitution, the CAG plays a critical role in ensuring transparency, accountability, and financial discipline in governance.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Course<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Genesis of the Institution of Comptroller and Auditor General (CAG)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Colonial Origins<\/b><span style=\"font-weight: 400;\">: The institution of the CAG in India originated during British rule, evolving from the office of the <\/span><b>Accountant General<\/b><span style=\"font-weight: 400;\">, established in 1858 to audit colonial finances under the British East India Company.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Pre-Independence Developments<\/b><span style=\"font-weight: 400;\">: The position of <\/span><b>Auditor General of India<\/b><span style=\"font-weight: 400;\"> was formalized under the <\/span><b>Government of India Act, 1919<\/b><span style=\"font-weight: 400;\">, and later expanded under the <\/span><b>Government of India Act, 1935<\/b><span style=\"font-weight: 400;\">, to ensure financial accountability in British India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Post-Independence Establishment<\/b><span style=\"font-weight: 400;\">: After India gained independence, the <\/span><b>Comptroller and Auditor General of India<\/b><span style=\"font-weight: 400;\"> was enshrined as a constitutional authority under <\/span><b>Article 148 of the Constitution<\/b><span style=\"font-weight: 400;\"> in 1950. <\/span><b>Narahari Rao<\/b><span style=\"font-weight: 400;\"> became the first CAG of independent India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Significance in the Constitution<\/b><span style=\"font-weight: 400;\">: The CAG was established as an independent entity to audit the accounts of the Union and States, ensuring financial transparency, and serving as the<\/span><b> &#8220;guardian of the public purse&#8221;<\/b><span style=\"font-weight: 400;\"> in India&#8217;s parliamentary democracy.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt;\"><b>Key Functions of Comptroller and Auditor General (CAG)<\/b><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Audit of Government Accounts<\/b><span style=\"font-weight: 400;\">: Audits the receipts and expenditure of the Union and State governments, including public sector undertakings (PSUs).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reporting to the Legislature<\/b><span style=\"font-weight: 400;\">: Submits audit reports to the President (for Union accounts) or the Governor (for State accounts), which are then tabled in Parliament or State Legislatures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Audit of Public Enterprises<\/b><span style=\"font-weight: 400;\">: Examines the financial performance of government-owned companies.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Custodian of the Consolidated Fund<\/b><span style=\"font-weight: 400;\">: Ensures that withdrawals from the <\/span><b>Consolidated Fund of India<\/b><span style=\"font-weight: 400;\"> or States are made only with proper legislative authorization.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Special Audits<\/b><span style=\"font-weight: 400;\">: Conducts special audits on the request of the President or the Governor, especially in cases of irregularities.<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-size: 16pt;\"><b>How is CAG in India Different from the CAG in Britain?<\/b><\/span><\/h3>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.3951%;\">\n<tbody>\n<tr>\n<td style=\"text-align: center; width: 13.4538%;\"><b>Aspect<\/b><\/td>\n<td style=\"text-align: center; width: 42.3585%;\"><b>CAG in India<\/b><\/td>\n<td style=\"text-align: center; width: 43.5033%;\"><b>CAG in Britain<\/b><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.4538%;\"><b>Status<\/b><\/td>\n<td style=\"width: 42.3585%;\"><span style=\"font-weight: 400;\">Constitutional authority under <\/span><b>Article 148.<\/b><\/td>\n<td style=\"width: 43.5033%;\"><span style=\"font-weight: 400;\">Appointed as part of the executive branch.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.4538%;\"><b>Role<\/b><\/td>\n<td style=\"width: 42.3585%;\"><span style=\"font-weight: 400;\">Independent auditor of public accounts and spending.<\/span><\/td>\n<td style=\"width: 43.5033%;\"><span style=\"font-weight: 400;\">Auditor and consultant to Parliament on public spending.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.4538%;\"><b>Reporting<\/b><\/td>\n<td style=\"width: 42.3585%;\"><span style=\"font-weight: 400;\">Reports directly to the President or Governors, who table them in Parliament or State Legislatures.<\/span><\/td>\n<td style=\"width: 43.5033%;\"><span style=\"font-weight: 400;\">Reports to the UK Parliament through the Public Accounts Committee.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.4538%;\"><b>Scope of Audit<\/b><\/td>\n<td style=\"width: 42.3585%;\"><span style=\"font-weight: 400;\">Audits all receipts, expenditures, and accounts of the Union, States, and Public Sector Enterprises.<\/span><\/td>\n<td style=\"width: 43.5033%;\"><span style=\"font-weight: 400;\">Primarily focuses on central government accounts, public corporations, and local bodies.<\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 13.4538%;\"><b>Tenure<\/b><\/td>\n<td style=\"width: 42.3585%;\"><span style=\"font-weight: 400;\">Fixed tenure of 6 years or until the age of 65, whichever is earlier.<\/span><\/td>\n<td style=\"width: 43.5033%;\"><span style=\"font-weight: 400;\">Tenure is not constitutionally fixed, depending on contractual terms.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+CSE+Books\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC CSE Books From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Constitutional Provisions Related to Comptroller and Auditor General (CAG)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Article 148<\/b><span style=\"font-weight: 400;\">: Establishes the CAG and defines its independence.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Article 149<\/b><span style=\"font-weight: 400;\">: Specifies the duties and powers of the CAG.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Article 150<\/b><span style=\"font-weight: 400;\">: Mandates the CAG to prescribe how accounts of the Union and States shall be kept.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Article 151<\/b><span style=\"font-weight: 400;\">: Requires CAG reports to be submitted to the President or Governor, who will place them before the legislature.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Third Schedule of Constitution: It <\/b><span style=\"font-weight: 400;\">includes the format of the <\/span><b>oath that the CAG<\/b><span style=\"font-weight: 400;\"> must take before assuming office. The oath emphasizes <\/span><b>allegiance to the Constitution<\/b><span style=\"font-weight: 400;\">, faithful discharge of duties, and upholding the sovereignty and integrity of India.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Independence of Comptroller and Auditor General (CAG)<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appointed by the <\/span><b>President <\/b><span style=\"font-weight: 400;\">of India.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Holds office for <\/span><b>6 years or until the age of 65<\/b><span style=\"font-weight: 400;\">, whichever is earlier.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Removal is possible only through impeachment, similar to a Supreme Court judge.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-size: 18pt;\"><b>Significant Contributions of Comptroller and Auditor General (CAG)<\/b><\/span><\/h2>\n<ul>\n<li><b>2G Spectrum Scam<\/b><span style=\"font-weight: 400;\">: Highlighted irregularities in the allocation of<\/span><b> telecom license<\/b><span style=\"font-weight: 400;\">s, leading to Supreme Court intervention.<\/span><\/li>\n<li><b>Coal Block Allocation<\/b><span style=\"font-weight: 400;\">: Exposed <\/span><b>losses <\/b><span style=\"font-weight: 400;\">due to discretionary coal block allocations.<\/span><\/li>\n<li><b>Bharatmala Project (2023)<\/b><span style=\"font-weight: 400;\">: Flagged delays and<\/span><b> cost overrun<\/b><span style=\"font-weight: 400;\">s in infrastructure development.<\/span><\/li>\n<li><b>Performance Audit of Ayushman Bharat (2023): <\/b><span style=\"font-weight: 400;\">Highlighted issues in healthcare delivery under India\u2019s<\/span><b> flagship health insurance schem<\/b><span style=\"font-weight: 400;\">e, including irregularities in beneficiary <\/span><b>verification <\/b><span style=\"font-weight: 400;\">and delayed payments to hospitals.<\/span><\/li>\n<li><b>Public Distribution System (PDS) Audit: <\/b><span style=\"font-weight: 400;\">Identified large-scale inefficiencies in the distribution of food grains under the PDS, including <\/span><b>diversion and leakage.<\/b><\/li>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">These recommendations led to <\/span><b>digitization of ration <\/b><span style=\"font-weight: 400;\">cards and better monitoring mechanisms.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.5984%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>Vinod Rai<\/b><span style=\"font-weight: 400;\">, the former Comptroller and Auditor General (CAG) of India, suggested several reforms to strengthen the institution and enhance its effectiveness in ensuring transparency and accountability.\u00a0<\/span><\/span><\/p>\n<p><span style=\"color: #000000;\"><b>Key reforms include:<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Strengthening Financial Autonomy<\/b><span style=\"font-weight: 400;\">:\u00a0 Advocated for greater independence in financial matters to ensure the CAG operates without external pressures, <\/span><b>safeguarding its role as an unbiased auditor.<\/b><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Performance Audits<\/b><span style=\"font-weight: 400;\">: Emphasized the need for performance-based audits instead of just financial compliance, focusing on the<\/span><b> outcomes and effectiveness <\/b><span style=\"font-weight: 400;\">of government schemes and policies.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Capacity Building<\/b><span style=\"font-weight: 400;\">: Suggested continuous <\/span><b>training and upskilling <\/b><span style=\"font-weight: 400;\">of CAG staff to handle audits of complex and modern sectors like IT, telecom, and environmental policies.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Timely Reporting<\/b><span style=\"font-weight: 400;\">: Proposed mechanisms to<\/span><b> expedite audit report<\/b><span style=\"font-weight: 400;\"> submissions, ensuring their relevance and impact during policy-making and parliamentary discussions.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Use of Technology<\/b><span style=\"font-weight: 400;\">:\u00a0 Highlighted the importance of adopting <\/span><b>advanced data analytics, AI, and IT <\/b><span style=\"font-weight: 400;\">tools to improve the accuracy and scope of audits in a rapidly digitizing economy.<\/span><\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400; color: #000000;\">These reforms aim to make the CAG more dynamic, proactive, and aligned with the challenges of modern governance.<\/span><\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Check Out UPSC NCERT Textbooks From PW Store<\/span><\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Challenges Faced<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Shrinking Parliamentary Time<\/b><span style=\"font-weight: 400;\">: The number of days Parliament meets has reduced over decades, leaving less time to debate critical reports like those from the CAG.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: In the <\/span><b>2023 Monsoon Session<\/b><span style=\"font-weight: 400;\">, Parliament functioned for just <\/span><b>17 days<\/b><span style=\"font-weight: 400;\">, limiting discussion on significant issues.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Politicization of Reports<\/b><span style=\"font-weight: 400;\">: CAG findings are often dismissed as politically motivated, especially when they highlight irregularities in flagship government schemes.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: Debates on the CAG\u2019s findings on <\/span><b>coal block allocations<\/b><span style=\"font-weight: 400;\"> (2012) became partisan, overshadowing substantive discussions.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Public Apathy and Limited Awareness<\/b><span style=\"font-weight: 400;\">: Citizens often remain unaware of the significance of CAG reports, reducing pressure on lawmakers to act on their findings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Resource Constraints<\/b><span style=\"font-weight: 400;\">: The CAG\u2019s limited resources and reliance on <\/span><b>outdated methodologies<\/b><span style=\"font-weight: 400;\"> hinder comprehensive audits in emerging areas like<\/span><b> cybersecurity and environmental governance.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Declining Staff Availability:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">As of 2021-22, the IA&#038;AD had a <\/span><b>staff strength of 41,675<\/b><span style=\"font-weight: 400;\">, a steady decline from the peak of 48,253 in 2013-14.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The number of IA&#038;AS officers employed came down to <\/span><b>553 in 2021-22<\/b><span style=\"font-weight: 400;\"> from 789 in 2014-15.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The strength of the audit and accounting staff reduced from over 26,000 in 2013-14 to <\/span><b>20,320 in 2021-22.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lack of Follow-Up Mechanisms<\/b><span style=\"font-weight: 400;\">: Many recommendations from the <\/span><b>Public Accounts Committee (PAC)<\/b><span style=\"font-weight: 400;\"> and CAG reports remain unimplemented due to weak enforcement mechanisms.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Data<\/b><span style=\"font-weight: 400;\">: <\/span><b>60% of CAG recommendations (2017-2021)<\/b><span style=\"font-weight: 400;\"> are yet to see effective follow-up action.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>No ex-ante auditing powers:<\/b><span style=\"font-weight: 400;\">\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Unlike many other countries like Japan, New Zealand, Australia and France, the CAG in India mainly performs the function of <\/span><b>ex-post auditing.\u00a0<\/b><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-151915\" src=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2025\/01\/181-678babbde4eed.webp\" alt=\"Comptroller and Auditor General \" width=\"654\" height=\"439\" srcset=\"https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2025\/01\/181-678babbde4eed.webp 815w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2025\/01\/181-678babbde4eed-300x201.webp 300w, https:\/\/pwonlyias.com\/stage\/wp-content\/uploads\/2025\/01\/181-678babbde4eed-768x515.webp 768w\" sizes=\"(max-width: 654px) 100vw, 654px\" \/><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Way Forward<\/b><\/span><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mandatory Parliamentary Debates<\/b><span style=\"font-weight: 400;\">: Establish protocols for mandatory discussion of key CAG reports in Parliament and state legislatures.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: The <\/span><b>United Kingdom\u2019s Public Accounts Committee (PAC)<\/b><span style=\"font-weight: 400;\"> ensures parliamentary discussions for every major audit finding.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Modernization of CAG<\/b><span style=\"font-weight: 400;\">: Equip the CAG with tools for auditing emerging areas like artificial intelligence, climate finance, and data governance.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: Canada\u2019s Auditor General uses <\/span><b>AI-based tools<\/b><span style=\"font-weight: 400;\"> for auditing government digital systems.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Enhanced Public Engagement<\/b><span style=\"font-weight: 400;\">: Make CAG reports more accessible through simplified <\/span><b>summaries <\/b><span style=\"font-weight: 400;\">and outreach via social media and public forums.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Example: The <\/span><b>Australian National Audit Office (ANAO)<\/b><span style=\"font-weight: 400;\"> publishes easy-to-read summaries to engage citizens.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Collaboration with Civil Society and Media<\/b><span style=\"font-weight: 400;\">: Collaborate with think tanks, <\/span><b>NGOs<\/b><span style=\"font-weight: 400;\">, and media to analyze and disseminate CAG findings for greater public awareness and accountability.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Example<\/b><span style=\"font-weight: 400;\">: NITI Aayog<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening the Public Accounts Committee (PAC)<\/b><span style=\"font-weight: 400;\">: Empower the <\/span><b>PAC to enforce accountability<\/b><span style=\"font-weight: 400;\"> by setting strict deadlines for action on audit recommendations.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><b>Data<\/b><span style=\"font-weight: 400;\">: The PAC handled <\/span><b>103 reports<\/b><span style=\"font-weight: 400;\"> in 2022 but faced delays in follow-up implementation.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.7979%;\">\n<tbody>\n<tr>\n<th style=\"width: 100%; border-style: solid; border-color: #000000; background-color: rgba(184, 165, 217, 0.53); text-align: left; vertical-align: middle;\"><span style=\"color: #000000;\"><b>Relationship between Comptroller And Auditor General of India (CAG) and Public Accounts Committee (PAC):<\/b><\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>CAG\u2019s Role in Auditing<\/b><span style=\"font-weight: 400;\">: <\/span> <span style=\"font-weight: 400;\">The CAG conducts audits of <\/span><b>government receipts, expenditures, and public undertakings <\/b><span style=\"font-weight: 400;\">and submits reports to Parliament, forming the basis of the Public Accounts Committee&#8217;s (PAC) discussions.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>PAC\u2019s Role in Examination<\/b><span style=\"font-weight: 400;\">: The PAC examines CAG reports to <\/span><b>ensure accountability of public funds<\/b><span style=\"font-weight: 400;\">, highlighting financial irregularities and inefficiencies in government spending.<\/span><\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Mutual Dependence<\/b><span style=\"font-weight: 400;\">: While the CAG provides independent audit findings, the PAC ensures their parliamentary scrutiny,<\/span><b> strengthening fiscal oversight.<\/b><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"color: #000000;\"><b>Case Example:\u00a0<\/b><\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"3\"><span style=\"color: #000000;\"><span style=\"font-weight: 400;\">The PAC\u2019s investigation into the<\/span><b> 2G spectrum case (2010)<\/b><span style=\"font-weight: 400;\"> was based on the CAG report, which estimated a<\/span><b> loss of \u20b91.76 lakh crore <\/b><span style=\"font-weight: 400;\">to the exchequer.<\/span><\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"color: #000000;\"><b>Data Accuracy and symbiotic relations<\/b><span style=\"font-weight: 400;\">: The PAC relies heavily on data of CAG&#8217;s detailed observations to ensure transparent governance, exemplified by the<\/span><b> PAC&#8217;s review of CAG audits on defense spendin<\/b><span style=\"font-weight: 400;\">g, ensuring funds are used effectively.<\/span><\/span><\/li>\n<\/ul>\n<\/th>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n<p style=\"text-align: center;\"><span class=\"vc_button\"><a href=\"https:\/\/www.pw.live\/batches\/upsc\/pw-only-ias?utm_source=seo+upsc+batch&#038;utm_medium=seo+upsc&#038;utm_campaign=seo&#038;utm_id=upsc\" target=\"_blank\" rel=\"noopener\">Enroll now for UPSC Online Classes<\/a><\/span><\/p>\n<h2><span style=\"font-size: 18pt;\"><b>Conclusion<\/b><\/span><\/h2>\n<p><b>CAG <\/b><span style=\"font-weight: 400;\">reports are essential tools for promoting transparency, accountability, and <\/span><b>efficient governance. <\/b><span style=\"font-weight: 400;\">However, challenges like<\/span><b> insufficient debate, lack of follow-up<\/b><span style=\"font-weight: 400;\"> mechanisms, and <\/span><b>public apathy<\/b><span style=\"font-weight: 400;\"> hinder their impact. By drawing on global best practices and <\/span><b>modernizing India\u2019s audit <\/b><span style=\"font-weight: 400;\">the government can strengthen democratic accountability and ensure better<\/span><b> utilization of <\/b><span style=\"font-weight: 400;\">public resources.\u00a0<\/span><\/p>\n<div class=\"vc_table_green\"><\/p>\n<table style=\"width: 99.6375%;\">\n<tbody>\n<tr>\n<td style=\"width: 111.19%; text-align: center;\" colspan=\"2\"><span style=\"font-size: 18pt;\"><b>Also Read<\/b><\/span><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/editorial-analysis\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Editorials<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/daily-current-affairs\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Daily Current Affairs<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/quiz\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Current Affairs Quiz<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/mains-answer-writing\/\" target=\"_blank\" rel=\"noopener\"><b>Daily Main Answer Writing<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-previous-year-papers?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Previous+Year+Papers\" target=\"_blank\" rel=\"noopener\"><b>Check Out Previous Years Papers From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/pwonlyias.com\/stage\/upsc-test-series-courses\/\" target=\"_blank\" rel=\"noopener\"><b>UPSC Test Series<\/b><\/a><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 49.797%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-textbooks?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Textbooks\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC NCERT Textbooks From PW Store<\/b><\/a><\/td>\n<td style=\"width: 61.393%; text-align: center;\"><a href=\"https:\/\/store.pw.live\/govt-entrance-exams\/upsc-books\/upsc-modules?utm_source=SEO&#038;utm_medium=PW+Live&#038;utm_campaign=UPSC+Modules\" target=\"_blank\" rel=\"noopener\"><b>Check Out UPSC Modules From PW Store<\/b><\/a><b>\u00a0<\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Delhi high court has recently censured the state government for its failure to place 14 reports of the Comptroller and Auditor General (CAG) before the legislative assembly.<\/p>\n","protected":false},"author":11,"featured_media":151924,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"tags":[],"paper-wise":[2084],"subject":[2124],"acf":[],"_links":{"self":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/151960"}],"collection":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs"}],"about":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/types\/current-affairs"}],"author":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/comments?post=151960"}],"version-history":[{"count":4,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/151960\/revisions"}],"predecessor-version":[{"id":152043,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/current-affairs\/151960\/revisions\/152043"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media\/151924"}],"wp:attachment":[{"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/media?parent=151960"}],"wp:term":[{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/tags?post=151960"},{"taxonomy":"paper-wise","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/paper-wise?post=151960"},{"taxonomy":"subject","embeddable":true,"href":"https:\/\/pwonlyias.com\/stage\/wp-json\/wp\/v2\/subject?post=151960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}