The duty of the Comptroller and Auditor General is not merely to ensure the legality of expenditure but…

Question

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

Ghissu Editorial · Accepted Answer

The CAG's duty goes beyond legality because propriety audit tests whether public money was spent with the prudence a person shows with his own, as Rule 21 of the General Financial Rules, 2017 requires. The 2012 coal block audit preceded the cancellation of 214 allocations.

**Introduction**

Ambedkar called the CAG "the most important officer under the Constitution of India". Under Articles 148-151 and the 1971 Act, the CAG checks not only whether spending was lawful but also whether it was wise.

**From Legality to Propriety in Public Audit**

SKETCH: concentric | Layers of CAG Audit
- Performance: outcomes, value
- Propriety: prudence, wisdom
- Regularity: legal authority

1. **Legality as the floor**: Section 13 of the 1971 Act tests spending against Parliament's appropriation; CAG Report No. 22 of 2025 flagged ₹33.19 crore of irregular allowances paid by the CAPFs.
2. **Propriety as the higher test**: Rule 21 of the General Financial Rules, 2017 demands the prudence a person shows with his own money; the same report found ₹1.97 crore of avoidable electricity charges at the National Gallery of Modern Art.
3. **Value for money**: The 2012 coal block audit's ₹1.86 lakh crore windfall estimate preceded the Supreme Court's cancellation of 214 allocations in 2014.

**Where Propriety Audit Meets Its Limits**

1. **Second-guessing policy**: The 2G report's ₹1.76 lakh crore presumptive loss was called hindsight, and a CBI court acquitted all accused in 2017.
2. **No power to enforce**: Findings matter only if the Public Accounts Committee pursues them, which it can do for only a fraction.
3. **Late arrival and chill**: Reports trail spending by years, ministries delay action-taken notes, and officials fear honest risk-taking being branded improper.

**Conclusion**

The statement holds: propriety makes the CAG the conscience of public finance rather than a book-keeper. Timely audits that respect genuine policy discretion, followed through by the PAC, would let accountability strengthen good governance instead of freezing it.

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

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