Q4. Exercise of CAG’s powers in relation to the accounts of the Union and the States is derived from Article 149 of the Indian Constitution. Discuss whether an audit of the Government’s policy implementation could amount to overstepping its own (CAG) jurisdiction.

Model Answer:

Introduction

The CAG's powers are enshrined in Article 149 of the Indian Constitution, which mandates the office to audit the accounts of the Union and State governments. This authority empowers the CAG to ensure financial accountability and transparency. 

Body

CAG’s Audit of Government Policy Implementation

Nature of Policy Implementation Audit

• Performance Audits and Policy: Performance audits may evaluate the implementation of government policies and programs to ascertain if the desired outcomes are achieved efficiently and effectively.
• Assessment Criteria: The CAG assesses:some text
  • Efficiency of resource utilization
  • Outcomes versus intended objectives
  • Compliance with statutory requirements

Jurisdictional Considerations

• Potential Overstepping: Critics argue that by delving into policy implementation, the CAG risks overstepping its jurisdiction, as it may be perceived as encroaching on the executive's domain in determining policy direction and priorities.
• Governance and Accountability: However, the CAG's involvement in policy audits is crucial for accountability. It can provide insights into whether the government's actions align with legislative mandates and public expectations.

Judicial Interpretation and Precedents

• Courts have occasionally interpreted the CAG's powers in light of its constitutional mandate. The Supreme Court has upheld the necessity of performance audits, indicating that they serve a critical role in ensuring government accountability without infringing upon the separation of powers.

Balancing Act

• Necessary Oversight: The CAG’s audits of policy implementation, while potentially seen as overstepping, are fundamentally aimed at enhancing transparency and ensuring that public funds are utilized effectively.
• Jurisdictional Boundaries: The CAG must navigate its jurisdiction carefully, ensuring that its performance audits are rooted in financial accountability without crossing into policy-making, which is the prerogative of the executive.

Recommendations

• Clarification of Roles: There is a need for clear guidelines defining the boundaries of the CAG's audit functions to avoid ambiguity regarding jurisdictional overreach.
• Collaborative Governance: Enhanced collaboration between the executive and the CAG can foster a more accountable government while respecting the boundaries of each entity's roles.

Conclusion

By carefully balancing its audit functions, the CAG can contribute significantly to the governance framework of India, promoting accountability while respecting the constitutional division of powers.

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