The Comptroller and Auditor General of India plays a crucial role in ensuring financial accountability and transparency in public expenditure. In the context of persistent unauthorised expenditure in Indian Railways, examine the constitutional provisions governing the CAG and the role of the Public Accounts Committee in enforcing legislative financial control.

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Introduction

Persistent instances of unauthorised expenditure in Indian Railways highlight gaps in financial discipline. The Comptroller and Auditor General (CAG) and the Public Accounts Committee (PAC) are central to enforcing legislative control over public finances.

Constitutional Provisions Governing CAG

Articles 148–151: Establish the CAG as an independent constitutional authority responsible for auditing Union and State finances.
Independence Safeguards: Security of tenure, removal akin to a Supreme Court judge, and charged expenditure ensure functional autonomy.
Audit Functions: Audits appropriation accounts, finance accounts, and public sector undertakings, ensuring expenditure conforms to parliamentary sanction.
Reporting Mechanism: CAG reports are submitted to the President/Governor and laid before the legislature.

Role in Addressing Unauthorised Expenditure

Compliance and Appropriation Audit: Flags cases where spending exceeds or deviates from Parliamentary approval.
Performance Audit: Evaluates efficiency and effectiveness of railway projects, exposing systemic lapses.
Financial Accountability: Acts as a watchdog by highlighting irregularities and recommending corrective measures.

Role of the Public Accounts Committee (PAC)

Legislative Scrutiny: Examines CAG reports to ensure executive accountability to Parliament.
Detection of Irregularities: Investigates instances of excess or unauthorised expenditure in departments like Railways.
Corrective Oversight: Seeks explanations from ministries and recommends disciplinary and systemic reforms.
Follow-up Mechanism: Ensures compliance through Action Taken Reports (ATRs).

Limitations

Non-binding Recommendations: PAC lacks enforcement powers; compliance depends on the executive.
Delays in Examination: Time lag reduces the immediacy of corrective action.
Systemic Issues in Railways: Weak internal controls and project overruns persist despite audit observations.

Conclusion

The CAG and PAC form the backbone of parliamentary financial oversight, but strengthening institutional follow-up, internal controls, and accountability mechanisms is essential to curb unauthorised expenditure effectively.

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