← All questionsGS2 · 2016 · Governance ·CAG Performance Audit: Overreach?
MAINS 2016
GS2
12.5 marks

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 jurisdiction.

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9 min
200 words

What the examiner wants

Discuss whether CAG auditing how policies are implemented exceeds its constitutional mandate.

DiscussExplain the different sides of the issue, use evidence, and finish with a balanced view.

Demand-wise check

  1. 1Mandate: Articles 148-151; DPC Act 1971; audit of legality, regularity and propriety≈35 words
  2. 2Performance audit checks economy, efficiency, effectiveness, which is about implementation, not policy choice≈35 words
  3. 3Overreach concerns: presumptive loss figures (2G, coal) seen as questioning policy≈35 words
  4. 4Balance: audit implementation, not wisdom of policy; Parliament (PAC) decides≈35 words

Open in about 30 words and close in about 30.

Answer plan

Article 149 and DPC ActTypes of auditArguments for and againstJudicial viewConclusion

Where marks usually go

  • Not distinguishing policy from its implementation
  • No examples of contested audits

Draw this

  • Spectrum: compliance audit → performance audit → policy evaluation (outside mandate)

Value addition

  • ExampleCAG's 2G report (2010) estimated a presumptive loss of Rs 1.76 lakh crore.CAG, 2010
  • CaseAssociation of Unified Telecom Service Providers v Union (2014): CAG can audit revenue-sharing private telecom firms.Supreme Court, 2014

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