1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.
2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.
3. Information from CAG reports can be used by investigating agencies to frame charges against those who have violated the law while managing public finances.
4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?
Correct Answer: (c) 2 and 3 only
Solution:In a financial emergency, the Union's executive authority may direct states to adhere to specified financial propriety canons and issue other necessary directives as deemed fit by the President. Hence statement 1 is not correct. CAG lacks full judicial powers in prosecuting law violators among government companies. It serves in an advisory capacity with limited quasi-judicial authority, rendering statement 4 incorrect. The Public Account Committee scrutinizes Appropriation Accounts of Railways, Defence, P&T Department, and Civil Ministries, along with CAG Reports on Revenue Receipts. CAG's reports are pivotal, making it the Committee's key advisor. Statement 2 is correct. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances. Hence statement 3 is correct.