Q17.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.

The CAG's powers to audit Union and State accounts are derived from Article 149 of the Constitution and the CAG's (Duties, Powers and Conditions of Service) Act, 1971.

CAG's Mandate and Scope of Audit

Its mandate extends beyond financial audits to include compliance and performance audits, the latter often examining policy implementation.

Arguments for Auditing Policy Implementation

• Ensures accountability, efficiency, economy, and effectiveness (3Es) of public expenditure.
• Prevents waste, identifies systemic flaws, and provides valuable feedback to Parliament.

Arguments Against Auditing Policy Implementation

• Potential encroachment on the executive's policy-making domain.
• Lack of technical expertise in policy formulation and risk of politicization.

Balancing Act: Distinguishing Policy Formulation from Implementation

The key lies in distinguishing auditing how a policy is implemented (performance audit) from questioning whether a policy should exist (executive prerogative).

CAG acts as a 'friend, philosopher, and guide' to Parliament, upholding public accountability without becoming a 'super-executive'.