Q. “The duty of the Comptroller and Auditor General is not merely to ensure the legality of expenditure but also its propriety.” Comment.

Model Answer:

The statement accurately reflects the CAG’s comprehensive mandate, which extends beyond mere legal compliance to include the propriety of expenditure.

• Legality of expenditure:

– The CAG verifies that all financial transactions comply with existing laws, rules, and regulations.
– This involves scrutinizing whether funds are spent as authorized by the Parliament or state legislatures.
– Example: In 2012, the CAG report on coal block allocations highlighted legal irregularities in the allocation process, leading to significant policy reforms.

• Propriety of expenditure:

– The CAG assesses whether public funds are utilized wisely, efficiently, and for intended purposes.
– It examines if the expenditure aligns with broader principles of financial prudence and ethical standards.
– Example: The 2010 Commonwealth Games audit report not only pointed out legal violations but also questioned the propriety of inflated contracts and wasteful expenditure.

• Dual role significance:
– Legality ensures rule-based governance and prevents misuse of public funds.
– Propriety promotes judicious use of resources and upholds public trust.
– Together, they form a comprehensive framework for financial accountability.

Conclusion: The CAG’s dual focus on legality and propriety strengthens India’s financial governance, promoting transparency, accountability, and efficient resource utilization.