CAG not just a fault-finding body: Rai

The Comptroller and Auditor General (CAG) today said its job was not merely that of a “fault-finding body”, but also encompassed partnering the government in locating and strengthening the delivery channels.

CAG of India Vinod Rai said the body was an ally of the government in conceptualising, designing and implementing social sector projects.

Rai was inaugurating the two-day task force meet of the Organisation for Economic Cooperation and Development (OECD) here.

Such cooperation extended to diverse fields, including primary education, primary health and rural employment, he said.

“The audit department is not a mere fault-finding agency in the implementation process, but partners government departments in locating weak links in the delivery channel. It recommends measures to strengthen the same, thereby ensuring mid-course corrections in upgrading governance,” Rai said.

“The institution of the Comptroller and Auditor General of India partners with government in ensuring accountability and transparency of the entire Budgetary process and its implementation,” he said.

Rai said external aid in the form of grants was no longer a major contributor to India’s development.

“Given its resource constraints, India has to rely extensively on borrowing to balance the budget and around 10 per cent of our borrowed funds come from external sources. Multilateral agencies contribute around 16 per cent of our external debt while bilateral agencies contribute around 9 per cent,” he said.

Rai said only a small portion of this debt, around 17 per cent, was on concessional terms and the rest was borrowed at market rates.

“We are, therefore, very concerned that borrowed funds are used optimally and the desired results are achieved in a tangible and timely manner,” he said, adding the government had brought in significant changes in Public Finance Management in the recent years.

“These include moving towards a uniform Goods and Service Tax, forthcoming Direct Taxes Code, FRBM, guidelines on cash management, preparation of detailed project reports, introduction of Outcome Budget and the unique identification programme,” he said.

Around 80 delegates from across the country and representatives of international financial bodies like the World Bank and the Asian development Bank are participating in the task force meeting of OCED, hosted by CAG.

OECD comprises major economies of the world, including the US, UK, France, Genmany and Italy.