In India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)? 1) CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency. 2) CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee. 3) Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances. 4) While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law. Which of the statements given above is/are correct?

The correct answer is C. Statements 2 and 3 are right, while 1 and 4 are wrong.

Statement 2 is correct. Under Article 151, CAG audit reports on the accounts of the Union and the States are laid before Parliament and the State Legislatures. The Public Accounts Committee examines them, and where the audit covers the execution of projects or programmes by ministries, the PAC questions the department and recommends corrective action. The CAG audits; the PAC follows up.

Statement 3 is correct. CAG reports are public documents and often provide the factual base for inquiries by agencies such as the CBI and the Enforcement Directorate. The CAG itself does not prosecute anyone.

Statement 1 is wrong. Exchequer control is exercised by the Finance Ministry through the Controller General of Accounts, under Parliament's appropriation authority. The CAG does not acquire this role during a national or financial emergency. Its function is audit, not control over withdrawals.

Statement 4 is wrong. The CAG has no judicial powers. Audit of government companies is carried out under the Companies Act and the CAG (DPC) Act, 1971, and the outcome is a report. Prosecution lies with investigating and enforcement agencies.

Core concept: the CAG as the post-audit authority, accountable to Parliament, within the chain of CAG, PAC and Parliament. Mains angle: how financial accountability works in practice, as seen in the 2G and coal allocation debates.

Trap: candidates assume the CAG has enforcement or judicial powers because of its prominence in corruption debates. Its power ends at reporting.