[Answered] Discuss the role of auditor general in Indian Parliamentary democracy. Analyse whether India needs a Parliament Budget Office for more parliamentary efficiency?

Constitutionally, Comptroller and Auditor General’s Office has been mandated to enhance accountability of the Executive to the Parliament and State legislatures by carrying out audits in the public sector and  providing out accounting services in the States in accordance with the Constitution of India and laws as well as best international  practices. Today, the CAG has been undertaking more performance audits than before and stress is not only just on how much money flows out of the exchequer to make a purchase, but towards  the economy and effectiveness of that purchase.

Role of auditor general in Indian Parliamentary democracy:

1. Article 148 of the Constitution provides for a CAG with the legal status of a Supreme Court judge.
2. The CAG is sworn in under Article 148(3) to uphold the integrity of the nation.
3. It is the duty of the CAG to audit all receipts which are payable into the Consolidated Fund of India. The rules and procedures are designed to ensure an effective check on the assessment, collection and proper allocation of revenue.
4. His duty is to uphold the Constitution of India and laws of Parliament in the field of financial administration.
5. The accountability of the executive (i.e., the council of ministers) to the Parliament in the sphere of financial administration is secured through audit reports of the CAG.
6. The CAG is an agent of the Parliament and conducts an audit of expenditure on behalf of the Parliament. Therefore, he is responsible only to the Parliament.
7. The CAG has more freedom with regard to the audit of expenditure than with regard to the audit of receipts, stores, and stock. ―Whereas in relation to expenditure he decides the scope of the audit and frames his own audit codes and manuals, he has to proceed with the approval of the executive government in relation to rules for the conduct of the other audits.
8. CAG has to ascertain whether money shown in the accounts as having been disbursed was legally available for and applicable to the service or the purpose to which they have been applied or charged and whether the expenditure conforms to the authority that governs it.
9. In addition to this legal and regulatory audit, the CAG can also conduct the propriety audit, that is, he can look into the wisdom, faithfulness and economy ‘of government expenditure and comment on the wastefulness and extravagance of such expenditure.

Need and advantages of having a Parliamentary budget office:

1. The role the auditor general performs, is to provide retrospective audits and analysis of the financial accounts and performance of government operations. These audits are often focused on the day-to-day goings on of government. A PBO provides prospective, forward-looking economic and fiscal projections, as well as policy costings. This distinguishes it from an auditor general, which provides useful information, but only after the fact.
2. MPs in India do not have a staff of high quality researchers (unlike in other developed democracies) to help them gain expertise in budgetary matters. A remedy for this may be the establishment of a parliamentary budget office (PBO) in India. Such research support can raise the quality of debate and scrutiny in Parliament as well as enhance fiscal discipline. Most importantly, it strengthens the role of Parliament in financial oversight.
3. India will surely benefit from an institutional mechanism that strengthens the capacity of the legislature to hold the executive responsible in financial matters. The amount of information parliamentarians need to scrutinise in Budget documents has exponentially increased and a PBO would assist parliamentarians in this process of scrutiny.
4. It is important to have an independent, non-partisan source for hard facts and evidence. This is particularly important for our Parliament, which controls where and how money flows into our government and our country.
5. Regardless of a majority or minority government, this body serves parliamentarians equally and without prejudice.
6. The work done by PBOs naturally ends up in the public sphere, when they do, they help drive smarter, more focused debate in the media and with our electorate.

The CAG has already to some extent achieved what he set out to do, especially when it comes to redefining the role of the office and the public perception of auditors. A PBO, or a similar independent fiscal institution, will supplement CAG in keeping parliamentary efficiency at par.