In a recent address at the SRCC Business Conclave, the Comptroller and Auditor General of India, Shri Girish Chandra Murmu, highlighted the pivotal role of audits in driving efficiency and effectiveness in governance. This Press Release delves into the insights shared by Shri Murmu regarding the significance of audits, their impact on accountability, and their broader implications for both the public and private sectors.
PRESS RELEASE
OFFICE OF THE COMPTROLLER AND AUDITOR GENERAL OF INDIA
15th March 2024
New Delhi
AUDIT PLAYS CATALYTIC ROLE IN PROMOTING EFFICIENCY AND EFFECTIVENESS: CAG
Objectives of audit are not merely to find out the deviations, non-compliance and fault finding in lawful decision-making but it plays catalytic role in promoting efficiency and effectiveness. This was stated by the Comptroller and Auditor General of India, Shri Girish Chandra Murmu while speaking at SRCC Business Conclave here today. ‘Different types of audit are taken up against the extant policies, rules, standards already prevalent at the time of audit. We inspect and examine records and the audit reports thereon are based on evidences’, he added. The role of CAG assumes significance in view of our federal multi-party democracy, wherein both the Union and State Governments are responsible for the formulation and implementation of a large number of schemes
involving substantial public resources, he further stated.
Shri Murmu stated that accountability, transparency, efficiency and effectiveness are assertions that are tested in audit. Such independent checks on the functioning of the government provides credibility to the executive and confidence to public at large. Securing accountability of the government protects its fiscal stability and its image globally, he said.
The CAG further said ‘Although accountability does not start and end with audit, it emphasizes the need to fix responsibility for healthy governance. Different types of audits, promotes pervasive sense of accountability, prompts course correction, optimal use of resources, efficient and effective implementation of plans, projects and programmes, etc. thereby it complements the administration and good governance.’
Stating that these principles are not exclusive to public functionaries, Shri Murmu said practicing financial discipline is essential to those in the private sector and also in our own daily lives. Businesses that keep an eye on both the top and bottom lines are often successful in meeting their obligations to all stakeholders. On the other hand, there have been several cases where the readiness of easy capital led to wasteful expenditure, losing sight of the target and eventual collapse of businesses, CAG stated.
Shri Murmu further stated that ‘While profit maximisation and wealth creations are rightfully the drivers of the private sector, my only suggestion to all of you is to also keep in mind your social responsibility, which extends beyond simply paying taxes. As India enters its Amrit Kaal, you are in a position of great privilege. The country looks towards you to lead the way in economy, science, policy, research, etc. As the world hails India’s demographic dividend, harnessing it will require more training, skilling and opportunities. You are the generation that will lead India for the next few decades, and I am sure your time in this prestigious institution will equip you with the tools that you will need to face the world’.
Advising the students to make the most of the opportunities that are coming their way, the CAG said that they should think of how they can benefit the nation and how their work can help the fellow Indians. ‘Today, India has the third largest startup ecosystem in the world, and we need to continue this strong push. Job creators, instead of job seekers, are just as important’, he concluded.
