For contribution to ensuring that governance systems are transparent, accountable.
President Pranab Mukherjee on Monday said the Comptroller and Auditor General’s office had made a significant contribution to ensuring that governance systems were transparent and accountable.
The President’s comments come at a time when the government has expressed disagreement with some of the CAG’s more recent findings on telecom, coal blocks, airports and the power sector.
Mr. Mukherjee also cautioned that attempts by any organ of the state to overreach itself could lead to “dissonance” in the system. “I am glad that during the past years, CAG’s audit has shifted from routine compliance audit to a more macro perspective. I must, however, stress that while redefining organisational roles and boundaries, all constitutional authorities need to adhere to the fine and calibrated system of checks and balances which forms the bedrock of our governance structures,” Mr. Mukherjee said, speaking at the inauguration of the 26th Conference of Accountants General here.
Referring to the contribution of the audit bodies, he said: “Audit reports are essentially a feedback on the many programmes undertaken by the government. The tone and timeliness of such feedback is, therefore, important. The Central Government releases funds to State Governments and even to the local bodies at district levels. The utilisation of these funds is known to the Central Government only through the mechanism of utilisation certificates. By the time these utilisation certificates are received, the programme has already been implemented. It is thus important that CAG’s reports are presented in time so as to enable mid-course corrections, if required.”
On the Public Accounts Committee and the Committee on Public Undertakings, he said that through these panels Parliament and the State Assemblies exercised the oversight functions expected of them. “These institutions have always functioned in a bipartisan manner and have contributed a great deal to the cause of transparency and good governance.”
Mr. Mukherjee said a major paradigm shift was taking place in the country and that there was realisation that governments alone could not do everything.






A policy that deprives the country of 2 lakh crore rupees earnings
could be condemned and commented and could be rightly pointed our or
raised upon by a competitive constitutional authority. There is
absolutely no over stepping in the case of CAG into executive or
legislature by indicating and reminding the government that they are
loosing crores of rupees by wrong policies. Supreme courts day in and
day out identify the mistakes done by the governments. Hence what is
wrong if another constitutional body raises certain questions. Earning
one crore rupees is such a difficult task in India by any of the
public sector units which are running in losses as sick units. Under
such circumstances if the government has the option of getting 2 lakh
crore rupees any saner person would go for a policy or decision that
would bring in such a huge amount which is earned without much
difficulty. Hence finding fault with CAG is patently wrong.
1. '...He said the Union Ministry of Finance was examining the Report of the Working Group set up to strengthen ‘Internal Audit Mechanisms’ in Government...' I have been hearing this for at least five decades. The recent disclosures makes one worry whether "Internal Audit Mechanisms'' will work at all. All CAGs, from the first one, have been urging competent "Internal Audit Mechanisms'' and we find none had surfaced so far.
Policy makers always want to play one up principle ignoring CAG and its report when it was concerned with only expenditure aspect of governance.During economy liberalization there is audit to legitimate income to the government.people started to corner profits under the guise of policies depriving the legitimate income to government calling it as social objectives.Since it related to huge money people at helm thought it a brokerage they have received for the purpose which policy was evolved and as usual CAG report be ignored or referred to some committee to find its death knell.Like election commission which was dormant for a long time become active and playing its role.CAG should be allowed to play its role more effectively so that the government will be really working for the development of our country.CAG is a mirror to the government for its betterment.CAG be allowed to function still more.Policy makers can adopt to suit rather than deplore it. Do more home work well for people
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