- CAG audit is post mortem in nature
- restricted to legal + regulatory aspects
- reccs only advisory
- since india has mostly line item budgets, CAG cannot conduct performance audits
- CAG Act 1971 allows CAG to conduct audits of only mins/dept and PSE
- no audit of developmental and welfare schemes
- since 1991, part of welfare state, huge amt of money spent on developmental & welfare scheme w/o accountability
- CAG audit just bureaucratic exercise w/o involvement of citizens
- in order to overcome weakness in fn of CAG, SA come into existence
Commitee
- judiciary
- beneficiaries
- NGO
- media
- pvt sector
- citizens
Steps in SA
- once District admin receives info bt money to be spent on scheme, inform to SAC
- SAC formed at lowest level
- district admin in consultation w/ local SAC formulates CC
- district admin takes responsibility for implementing those CC
- when implementation happens, SAC evaluates performance of B
- audit happens in realtime
- reduces scope of corruption
- B accountable
- after completion, SAC evaluate performance of B in 4 Es
- economy
- efficiency
- effectiveness
- equity
- (CAG audit restricted to economy + efficiency)
- SAC submits report to state govt
- state govt takes action if needed based on SAC report
Problems in implementation of SA
- lack of awereness
- reluctance of B in implementation of audit
- colonial attitude of B
- (others same as CC)