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:

Article 148 establishes the CAG as the guardian of the public purse, drawing its dual audit mandate from the CAG (Duties, Powers and Conditions of Service) Act, 1971.

1. Ensuring Legality (Regulatory & Compliance Audit)

• Constitutional Compliance: Verifies that public expenditure aligns exactly with specific Parliamentary approvals (Appropriation Act).
• Statutory Conformity: Ensures spending adheres strictly to prescribed financial rules and executive limits (Section 13, CAG DPC Act).
• Financial Accuracy: Validates vouchers and documentation to prevent mechanical misappropriation, fraud, or accounting errors.

2. Ensuring Propriety (Wisdom & Performance Audit)

• Wisdom and Economy: Evaluates if the spending was prudent, assessing “value for money” to prevent wasteful allocation.
• Substantive Accountability: Questions executive discretion to ensure it genuinely serves the public interest, even if the expenditure is technically legal.
• Performance Evaluation: Exposes systemic inefficiencies, revenue loss, and flawed resource allocation (e.g., 2G Spectrum, Coalgate reports).
• Discretionary Power: While legal audit is mandatory, propriety audit is discretionary yet fundamental for comprehensive parliamentary oversight.

By transcending mechanical compliance to evaluate the overarching prudence of public expenditure, the CAG upholds substantive democratic accountability and financial integrity.