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 audit of the Government’s policy implementation could amount to overstepping its own (CAG) jurisdiction.
Approach · directive: “discuss”
What it asks · Explain the constitutional and statutory basis of CAG's powers, then argue whether auditing how policies are implemented crosses into questioning policy itself.
The question has 2 parts — answer each
- Discuss: the constitutional and statutory basis of the CAG's audit powers (Articles 148 to 151 and the 1971 Act)
- Discuss: whether auditing the government's policy implementation oversteps the CAG's jurisdiction, with a reasoned position
Open with · Article 149 lets Parliament prescribe the CAG's duties and powers, which the CAG (Duties, Powers and Conditions of Service) Act 1971 does.
Cover
- Basis: Article 148 secures the CAG's independence; Article 149 and the 1971 Act set the audit mandate; Article 151 sends reports to Parliament and Assemblies.
- Kinds of audit: compliance and financial audit, propriety audit, and performance audit of economy, efficiency and effectiveness in the use of public money.
- No overstepping: audit of implementation asks whether money achieved its aims, which is a duty toward Parliament and the Public Accounts Committee.
- Overstepping risk: if the CAG questions the merits of a policy, or estimates speculative losses, it substitutes its view for the executive's.
- Controversies: the 2G and coal allocation reports drew criticism of loss estimates, yet led to parliamentary and judicial scrutiny.
- Safeguard: audit outcomes and process, not the wisdom of policy; give departments a right of reply, and let the PAC review the findings.
Close with · Auditing implementation lies within the CAG's mandate; auditing the wisdom of policy does not, so restraint and a clear line between the two must be kept.
Add value (verified)
- Article 149 leaves the CAG's duties and powers to be set by Parliament through law. The Constitution of India (as on 1 May 2024), Article 149 — Legislative Department ↗“The Comptroller and Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament”
Question: UPSC's CS (Main) 2016, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 30 Sept 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 282 words (UPSC limit 200) · Minimalist IAS
Article 149 leaves the CAG's duties and powers to Parliament, which set them out in the CAG (Duties, Powers and Conditions of Service) Act, 1971; the mandate goes well beyond checking arithmetic.
Basis of the CAG's powers
- Article 148 secures independence through the manner of appointment, removal and conditions of service.
- Article 149 and the 1971 Act define the audit mandate over the accounts of the Union, the States and bodies substantially financed by them.
- Article 151 sends the reports to the President or Governor for laying before Parliament or the Assembly, where the Public Accounts Committee examines them.
- The audit has several kinds: financial, compliance, propriety and performance audit, the last testing economy, efficiency and effectiveness in the use of public money.
Does auditing implementation overstep?
- No, when it asks whether money achieved the stated aims. Parliament votes funds for outcomes, and performance audit is how it learns whether they were delivered; audit of implementation is audit of accountability.
- Yes, when the CAG questions the merits of a policy choice, substitutes its judgement for the executive's, or computes speculative losses on assumptions the policy never made.
- The 2G spectrum and coal block allocation reports show both faces: their loss estimates were disputed, yet they set off parliamentary and judicial scrutiny of how the allocations were made.
Keeping the line
- Audit outcomes and process, not the wisdom of policy; state every assumption behind a loss figure; give departments a right of reply; leave judgement on the findings to the Public Accounts Committee.
Auditing how a policy is implemented sits squarely within the CAG's mandate; auditing whether the policy was wise does not, and the institution's authority rests on keeping that line visible.
Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.