“The duty of the Comptroller and Auditor General is not merely to ensure the legality of expenditure but also its propriety.” Comment.
Approach · directive: “comment”
What it asks · Explain legality (regularity) audit and propriety audit, why the CAG must do both, with examples, and the limits of propriety audit.
The question has 2 parts — answer each
- Comment: explain legality (regularity) audit and propriety audit, and why the CAG's duty covers both
- Support with examples of propriety and performance audit, note its limits, and give a reasoned view
Open with · Under Articles 148–151 the CAG audits the accounts of the Union and the states; beyond asking whether money was spent as authorised, it asks whether it was spent wisely.
Cover
- Legality audit: checks that spending matches appropriation, rules and sanctions — the minimum test of financial regularity.
- Propriety audit: tests prudence — no extravagance, no benefit to particular persons, spending as carefully as one's own money.
- Performance audit extends this to economy, efficiency and effectiveness; reports on spectrum and coal allocation shaped public debate.
- Why it matters: reports go to Parliament and the PAC, enabling financial accountability and deterring misuse.
- Limits: propriety findings are advisory; critics warn of second-guessing policy choices and fostering risk-averse administration.
- Reforms: timely reports, stronger PAC follow-up, audit of PPPs, local bodies and autonomous entities.
Close with · By auditing propriety and performance, the CAG guards value for public money; its impact depends on Parliament acting on what it finds.
Add value (verified)
- Article 151 routes CAG reports on Union accounts to Parliament — the channel through which audit becomes accountability. The Constitution of India (as on 1 May 2024), Article 151(1) — Legislative Department ↗“relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament.”
Question: UPSC's CS (Main) 2024, GS Paper II — paper ↗. Approach: Minimalist IAS, checked 30 Sept 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 229 words (UPSC limit 150) · Minimalist IAS
Under Articles 148–151 the CAG audits Union and state accounts and reports to the legislatures; the statement means audit must ask not only whether money was spent as authorised but whether it was spent wisely.
Legality audit: the floor
- Regularity audit checks that expenditure was sanctioned by a competent authority, stayed within the appropriation voted and followed the rules — the guarantee that control of the purse stays with Parliament.
Propriety: equally the CAG's duty
- Propriety audit tests prudence: no expenditure beyond what the occasion demands, no benefit to a particular person or group, and the care one takes with one's own money.
- Performance audit extends this to economy, efficiency and effectiveness; the reports on 2G spectrum and coal-block allocation showed how lawful-looking decisions can still cost the exchequer.
- Accountability chain: under Article 151 the reports go to Parliament and the Public Accounts Committee, which turns findings into answerability and deters careless spending.
Limits of propriety audit
- Its findings are advisory; the CAG cannot disallow expenditure, and follow-up depends on the PAC and the executive.
- Risk of second-guessing policy: notional-loss estimates are contested and can breed risk-averse administration.
- Gaps remain in timely reporting and in auditing PPPs, autonomous bodies and local governments.
Legality is the floor of public audit and propriety its purpose; the CAG's propriety and performance audits protect value for public money, provided Parliament acts on them.
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.