DECREASE IN CAG AUDITS TABLED IN PARLIAMENT: TRENDS AND IMPLICATIONS

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TAG: GS 2: POLITY AND GOVERNANCE

THE CONTEXT: In 2023, only 18 audits of the Union government were tabled in Parliament by the CAG, marking a substantial decrease from previous years.

EXPLANATION:

• Between 2019 and 2023, the average number of reports presented annually stood at 22, contrasting sharply with an average of 40 reports per year from 2014 to 2018.
• The pinnacle was in 2015, with 53 reports, but since then, the number has been consistently lower, with four of the last six years witnessing 20 or fewer reports being tabled.
• The Comptroller and Auditor General (CAG) of India is responsible for conducting audits of the Union government’s financial transactions and presenting reports to Parliament for scrutiny and accountability.
• However, recent trends indicate a notable decline in the number of CAG audits tabled in Parliament, raising concerns about transparency and accountability in governance.

Factors Contributing to the Decline

• The reduction in the number of reports coincides with multiple factors, notably the downsizing of staff strength within the CAG and budgetary constraints faced by the Indian Audit and Accounts Department.
• In 2023-24, the allocation to this department represented a mere 0.13% of the Union Budget, signifying a severe reduction in financial support for conducting audits and maintaining operational capabilities.

Budget Cuts and Staffing Challenges

• Budgetary constraints have posed significant challenges for the CAG, impacting its ability to carry out comprehensive audits effectively.
• The decline in staff strength and financial resources has likely hindered the capacity of the CAG to conduct thorough examinations of government expenditure, leading to a decrease in the number of audits produced and tabled for parliamentary scrutiny.

Implications for Transparency and Accountability

• The diminishing number of CAG audits tabled in Parliament raises concerns regarding transparency and accountability in governance.
• These reports serve as critical tools for assessing the government’s financial management, identifying inefficiencies or irregularities, and ensuring accountability to taxpayers and citizens.

Urgency for Addressing the Issue

• The decline in the presentation of audit reports emphasizes the urgency for addressing the resource constraints faced by the CAG.
• Adequate funding and adequate staffing are essential to enable the CAG to fulfill its mandate effectively, ensuring robust oversight of government spending and operations.

Need for Reinforcement of Oversight Mechanisms

• Efforts should be directed toward reinforcing oversight mechanisms, enhancing the capacity of the CAG to conduct rigorous audits, and facilitating the presentation of comprehensive reports to Parliament.
• This reinforcement is vital for upholding transparency, promoting accountability, and fostering good governance practices within the government.

Comptroller and Auditor-General of India (CAG):

• CAG is an independent authority under the Constitution of India.
• He is the head of the Indian audit & account department and chief Guardian of Public purse.
• It is the institution through which the accountability of the government and other public authorities (all those who spend public funds) to Parliament and State Legislatures and through them to the people is ensured.

Conclusion

• The reduction in CAG audits tabled in Parliament, attributed to budgetary limitations and staffing challenges, underscores the importance of reinforcing the CAG’s capabilities.
• Strengthening oversight mechanisms and providing adequate resources to the CAG are essential steps toward ensuring effective scrutiny of government finances and operations, thereby upholding transparency and accountability in governance.

SOURCE: https://www.thehindu.com/todays-paper/2023-12-19/th_chennai/articleGIBC5O39O-5232531.ece