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CAG meeting challenges by AkshayKumar56

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									         The Comptroller & Auditor General of India New Delhi

                CAG Essay Competition 2011
                          TITLE PAGE FORMAT

1. Name of Participant (Mr. /Ms.): AKSHAY KUMAR SINGH

2. Father’s Name: SHRI JAI SINGH

3. Date of Birth: 05/02/1991

4. College/University: TAMILNADU AGRICULTURAL UNIVERSITY
                     “Agricultural Engineering College and Research Institute,
                     Kumulur – 621712, Pallapuram Post, Lalgudi –
                     Tiruchirappalli Distt.
                     TAMILNADU,
                     INDIA.”


5. School/College Identity Card No: BTE-08-003

6. Graduate/ Post graduate program in which enrolled:
      B.Tech. in Agricultural Engineering

7. Contact Information:

Mailing address: Agricultural Engineering College and Research Institute,
                 Kumulur – 621712, Pallapuram Post, Lalgudi –
                 Tiruchirappalli Distt.
                 TAMILNADU,
                 INDIA.

Telephone number: +91- 9787419201

E‐mail: kumarakshay938@gmail.com
          Role of CAG in meeting challenges of Good Governance

Taken as a whole, the presidential powers are formidable indeed. There is
hardly any other constitution which gives such a long and detailed list of powers
to its chief executive. The CAG (Comptroller and Auditor General) of India is
then also judged by the president (The chief executive of a republic). All audit
reports (issued commands or orders) of CAG are passed with the approval of
the president before disclosing to parliament. Activities are carried under the
rules and regulation, made by the constitution of India. Our old constitution is
modeled on British parliamentary, comprises some limitations and promotion in
corruption. Persons abuse relaxations which belonging to the political or
intellectual left. This article focuses on government responsibilities of CAG,
key requirements in accountability „not only governmental institutions but also
in private sectors and civil society organizations‟, its role in meeting challenges
and limitations.

Flow sheet of contents

   1. Definitions
   2. Introduction
   3. Challenging problems to good governance
   4. Promoted corruption and its cause
   5. Implementation of CAG in Indian Governance.
   6. CAG in NEWS
   7. Conclusion
Definitions and abbreviations used in discussion
   - Governance: Governance is the exercise of political, economic and
      administrative authority to manage a nation's affairs.
   - Good Governance: Governance which is formed to accomplish
      following activities, highlighted above in order to beat corruption
      nowadays.
   - CAG: Comptroller and Auditor General
   - IAAD: Indian Audit and Accounts Department
   - IT:- Information Technology
   - IPL: Indian Premier League
   - SAI: Supreme Audit Institution
   - UHS: Urban Health Sector
   - CB: Coal Block allocations
   - Commonwealth Games (CWG): “An episode of the British comedy
      television series”, games are to be conducted among the nations which
      had been trapped by Britishers in ancient history.
   - NRHM: National Rural Heath Mission
   - CMO: Chief Medical Officer
   - MBO: Management By Objectives
   - PROP: Pressure and Results Oriented Philosophy
   - QCPCA: Quality Circles and Profit Center Approaches
   - SWOT: Strength, Weakness, Opportunities and Threats
Introduction
      Hitherto an exhaustive investigation is pursued in to origin and future
courses for good governance. Recently the term “governance” has been
eliminated and “good governance” is increasingly used in development
journalism. An issue of Good governance keeps in majority when the human
resources of a department and purpose of administrating policies suppose to be
spoiled. Impairment of virtue and moral principles has their hand into enhanced
corruption. By crude estimate at least 95% of politicians, judges, police, public
and civil servants, industrialists, etc. are corrupt. These corrupts are looting our
country for last sixty years. India is going through a state of complete
revolution. Anti-corruption policy has been developed in order to give a clear
signal as to the donor states‟ position regarding the issue of good governance in
which the CAG (Comptroller and Auditor General) of India plays a significant
role. The CAG works through the organization of the Indian Audit and
Accounts Department (IAAD). An annual report is then executed to the
parliament which shows accountability fluctuations in the government-owned
companies and the public sectors. Accounts are characterized by approbation of
president in which power is divided between one central and several regional
authorities under the Constitution of India. This, written article shall focus on
challenging problems to the good governance, promoted corruption and its
cause, collision of the CAG with meeting challenges of the good governance
and steps to make a clean governance.
Challenging problems to good governance
      „Human rights‟ or „environment rights‟ are the basic parts of good
governance. Dropout voice in decision-making, either direct or genuine
instructions represents unpleasant participation of public. Active participatory
processes towards the good governance creation promote information exchange
and transparency in decision-making processes. The CAG shall then improve
the overall governance and economic efficiency of the development activities.
Sudden fall in statistical annual reports due to weak accountability points at the
poor performance of governance towards the unit. According to IT Audit
Section (I) - 2002; computers have been brought as an effective business tool.
Manual dealing with pen and papers stopped using in public sector enterprises
and accounts auditing through which exchanged information, election files and
sequence of activities keep safe and the future evaluation can then be done
successfully.
Promoted corruption and its cause
      To seek easy money promotes corruption in our country. No matter, how
hard we try our level but corruption cannot be emitted completely. More
number of politicians are corrupt in India, it seems. Individuals those keep
themselves under shadow of politicians‟ hand play an important role to endorse
corruption. News articles focus on multi-crore 2G spectrum day-to-day. This
issue put maximum number of politicians and their supporters in the domain of
corruption.
      The CAG report on the multi-crore 2G spectrum scam led to some top
politicians, administrators and corporate bosses being thrown behind bars. A
naked look of corruption can easily be seen in IPL games and 2010
commonwealth games, giving continuously terrifying situations to the
government. These sites have been disclosed by the reports of the government
auditor of CAG, pursuing various activities on black money investigation.
      Deep seated animus in humans and the old constitution of ancient India;
they two are the counterpart of each other. The working approach towards
management (planning with organization and accomplishing their objectives) of
the constitution of India is very old which still requires some changes to come
over the corruption, running in Indian public sectors and government-owned
companies.
      The relaxation in rules and regulations by parliament has opened the pore
spaces to corrupt persons. The politicians and other uncivilized (corrupt people)
abuse natural human resources and excavate running-hood principles of the
constitution of India. Threat into an organization are originated from external
factors (government, custom, economic/political situations and pricing policy of
government) and fastened their roots into the organization itself, are generally
known as internal factors (share holders, employees, quality control and price).
      Although the CAG has tried plaudits from the experts for doing a
relatively thorough job, pleasant results not yet out. Even chartered accountants
auditing public sector companies under the watchful eyes and superintendence
and dictates of the CAG do a much better job vis-à-vis the audit of private
sector companies.
Implementation of CAG in Indian Governance
      The CAG works for a complex anatomical structure of SAI (Supreme
Audit Institution) of India. Therefore being a CAG of the India shall involve
him-/her-self for all financial activities from central auditing accountancy to
local bodies such as Panchayat, farmers‟ club meetings etc.. CAG deals
accountancy and expenditure on the government and by the government. It acts
as guidebook of the government departments.
      Although CAG has a wide range of working area – central board to state
government and account auditing of all public sectors and government-owned
companies, CAG‟s power and duty have serious limitations of working,
regulated by the constitution of India and CAG services Act, 1971. Therefore
corruption starts promoting where the power of CAG stops.
      There are generally two ways which could be followed to focus on
CAG‟s working performance towards the formation of good governance. One is
CAG audit description under department social, political, economical and
commercial connections and another one focusing separately on each
department‟s connections with CAG pragmatically. Role of CAG is then
understood effectively if each individual shall have to be connected CAG.
    CAG’s Audit and social Audit:-
   The CAG assessed the 11-year period (1998-99 to 2008-09), covering the
whole country, but focused on major grain producing states like Punjab. “Stop
sale” orders were issued by CAG, since 2011, when abundant quantity of non-
standard fertilizers was sold in Punjab. This fertilizer application was used by
number of skeptical farmers of Punjab which caused of 8% fall in productivity.
   Likewise CAG revealed the urban health service failure of UHS by state
government of Uttar Pradesh. According to CAG report of 2007, there was
inflated expenditure and non-utilization of Rs 1,243.63 crore by the health
department.
   The government auditor CAG is therefore contemplating steps to strengthen
auditing of social sector schemes like MNREGA (mid-day meal programme) to
ensure that benefits reach the target persons at minimum cost. CAG has been
conducting performance audits of socio‐economic developmental programmes
of the Central and State Governments.
   The Indian Audit & Accountant Department has been actively thinking about
ways and means of making audit more relevant to the executive and thereby
facilitates the governments‟ efforts in implementation of various programmes,
CAG highlighted the workshop on Social Audit-Roadmap for Effective Public
Accountability.
    CAG and political environment:-
   Multi-crore 2G Spectrum has not been hidden to CAG anymore. CAG report
   exhibits periodical settlement or authorized accounts of CWG and CB
   allocations. Whatever conspiracy, corruption and complicity seemed in 2G,
   or CWG or Coal Block (CB) allocations, have been disclosed by CAG‟s
   report, tabled into parliament. CAG also pointed at the huge loss to the
   exchequer by „Indian Olympic Association‟ and „Common Wealth
   Organization‟.
    CAG’s Audits and Civil Audits:-
   All the records of processes related to procurements done under NRHM as
   well as the construction and other civil works undertaken this mission are
   reported to the Principal Accountant General (PAG). Then PAG transfers all
   the data to CMO and the final report is then then sent to CAG. Before stating
   Audit, the CAG has hands over a checklist and performance of NRHM.
    CAG’s Audits and Financial Audits:-
   CAG‟s work in financial market shall analyze financial statements such as
   stocks of ownership of a public corporation, Mutual Funds, Hedge Funds etc.
   On the other hand Decision Making authority in bond prices of Bond
   Markets if stock prices go up or down. Recently a draft report on oil and gas
   audit has been submitted by CAG in which petroleum exploration by leading
   private companies was highlighted. This Oil and Gas Audit report may give
   a good direction to Indian economy in future.
    CAG’s Audits and Business Audits:-
   In order to accomplish objectives and goals of a business successfully is a
   naked challenge in India and it is not easy to deal with the deep seated
   corruption in every step of business organization‟s people.
      Therefore CAG decides to run public sectors and all government-owned
   companies with MBO which is based on Pressure and Result Oriented
   Philosophy. The formation of Quality Circles and Profit Center Approaches,
   such kind of all activities are undertaken in CAG in order to accomplish a
   particular objective as well as to enhance business ethics of a business
   organization.
      SWOT analysis of the particular business organization is then done if the
   taken actions and the facilities provided to run the business, listed above are
   seen, getting spoiled. However the SWOT analysis is not recommended in
   moderate negative conditions because its study effects on both external
   environment as well as internal environment of running business.
   Apart from these activities carried by CAG, there are some limitations by
which CAG cannot act beyond. This environment of working of CAG,
controlled under a domain, may cause of negative impact in formation of Good
Governance. As the challengers are facing in society, there is an inevitable
increment in corruption, crime, moral decline of human etc., even though
restrictions are to be put on the any Government Audit Organization to prevent
the negative impacts of that organization if something wrong is done around.
There are limitations for CAG i.e. not to deal with direct accounting, making
reports and submit them to precedent before disclosing to parliament, not to
question against high-command orders and Supreme Court etc. CAG shall
report on accidents, on events, against corruptions but not have authority to
involve him/her-self in issue. Working under a domain is still a challenge to
CAG but however they limit are essential. All the rule and regulations are
followed by CAG passed from Supreme Court on the order of High-Command
under the Constitution of India.

								
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