In India, other than ensuring that public funds are used efficiently and for the intended purposes, what is the importance of the office of the Comptroller and Auditor General (CAG)? 1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares a 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 press 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?

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YESPYQ · Accepted Answer

Correct answer: 2 and 3 only. Statement 1 is incorrect: The CAG does not exercise exchequer control during emergencies (whether national or financial). The Finance Ministry and the Department of Economic Affairs are responsible for the management of the exchequer during such emergencies. The CAG’s role remains to audit and report on the use of public funds, but it does not have direct control over financial matters during an emergency. Statement 2 is correct: PAC’s chief function is to examine the audit report of Comptroller and Auditor General (CAG) after it is laid in the Parliament. CAG acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament. Statement 3 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. Statement 4 is incorrect: While dealing with the audit and accounting of government and PSUs, CAG does not have certain judicial powers for prosecuting those who violate the law. CAG is merely an advisory body and has some quasi-ju

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