Exercise of CAG's powers in relation to the accounts of the Union and States is derived from Article 149…

Question

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

Ghissu Editorial · Accepted Answer

Auditing how a policy is implemented lies within the CAG's mandate under Article 149 and the 1971 Act, because it measures execution against the policy's own objectives. It oversteps only when it questions the policy choice itself, as the 2012 Natural Resources Allocation reference warned.

**Introduction**

Article 149 and the CAG's DPC Act, 1971 empower the CAG to audit Union and State accounts. The 2G and coal reports of 2010-12, with "presumptive losses" of ₹1.76 lakh crore and ₹1.86 lakh crore, raised the question of whether auditing implementation means auditing policy.

**Why Auditing Implementation Lies Within the Mandate**

1. **Statutory backing**: The 2007 Audit Regulations, framed under the 1971 Act, expressly provide for performance audit, a duty Parliament enabled.
2. **Agent of Parliament**: Reports go to the legislature and PAC under Article 151; the CAG informs, elected members decide.
3. **Proven value**: The 2023 PM-JAY audit found about 7.5 lakh beneficiaries tied to one phone number, and the Bharatmala audit found per-km costs roughly doubled, lapses only implementation audit could expose.

**Where Audit Risks Overstepping Its Jurisdiction**

SKETCH: spectrum | Where Audit Ends
left: Regularity audit
right: Policy choice
- Legality
- Propriety
- Economy, efficiency, effectiveness
- Outcome gaps
- Merits of policy

1. **Questioning policy choice**: The Natural Resources Allocation reference (2012) held auction is not the only valid method, so grading allocation policy itself strays into the executive domain.
2. **Speculative losses**: Presumptive loss figures, never proven in court, shaped public verdicts beyond audit's evidentiary role, as the 2017 2G acquittals showed.
3. **Hindsight bias**: Judging decisions with later information can chill honest decision-making, feeding the policy paralysis debate of 2012-14.

**Conclusion**

Auditing how a policy is executed against its own objectives is the core of Article 149 accountability, not overreach. The CAG oversteps only when it substitutes its preference for the policy choice, a line that clear audit standards and prompt PAC scrutiny can hold.

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

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