Section 12 of The Comptroller and Auditor Generals Duties Powers and Conditions of Service Act 1971

Section 12 of The Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971

Information and Assistance to Governments

Original Text

12. Comptroller and Auditor-General to give information and render assistance to the Union and States.—The Comptroller and Auditor-General shall, in so far as the accounts, for the compilation or keeping of which he is responsible, enable him so to do, give to the Union Government, to the State Governments or to the Governments of Union territories having Legislative Assemblies, as the case may be, such information as they may, from time to time, require, and render such assistance in the preparation of their annual financial statements as they may reasonably ask for.
    

Visual Summary

Provide Info

Supply data to Union, States, and UTs with Assemblies.

Render Assistance

Help prepare Annual Financial Statements.

Constraint

Limited to accounts the CAG is responsible for compiling.

Summary

Section 12 establishes the Comptroller and Auditor-General (CAG) as a key facilitator for the Union and State governments. It mandates that the CAG must provide relevant information and assist in the preparation of annual financial statements (budgets) when requested. However, this duty is not absolute; it is limited to the data available from the accounts the CAG is legally responsible for compiling, and the government’s requests must be “reasonable.”

Key Takeaways

Dual Role: The CAG acts not just as an auditor but as an accountant/advisor by providing data for financial planning.
Scope of Beneficiaries: Includes the Union Government, State Governments, and Union Territories with Legislative Assemblies (e.g., Delhi, Puducherry).
Dependency on Section 10: The ability to assist is directly tied to the accounts the CAG compiles under Section 10. If relieved of compiling certain accounts, the duty to provide info on them ceases.

Key Analysis

•
Cooperative Federalism: This section highlights the symbiotic relationship between the CAG and the Executive. While the CAG audits the Executive, he also assists them in financial administration, ensuring that budget estimates are based on accurate historical accounting data.
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The “Reasonable” Clause: The phrase “as they may reasonably ask for” is a crucial safeguard. It prevents the administration from overwhelming the CAG with frivolous or excessively burdensome requests that could detract from his primary audit duties.
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Linkage to Compilation Duties: The section explicitly states “in so far as the accounts… enable him so to do.” This means if the CAG has been relieved of compiling accounts for a specific department (under the provisos of Section 10), he cannot be compelled to provide information regarding that specific department, as he does not possess the primary data.

Key Ingredients

Requesting Entity: Must be Union Govt, State Govt, or UT with a Legislative Assembly.
Source Material: Information must be derivable from accounts the CAG is responsible for compiling/keeping.
Purpose: Generally for information or preparation of Annual Financial Statements.
Condition: The request must be reasonable.

Related Provisions

Practical Illustrations

Example 1: Budget Preparation
The Finance Department of State X is preparing its Annual Financial Statement (Budget) for the upcoming year. They need precise figures on the actual expenditure incurred on ‘Education’ during the last financial year. Under Section 12, the CAG provides these figures based on the accounts compiled by his office.

Example 2: Relieved of Duties
The President has relieved the CAG from compiling the accounts of the Department of Defence (under Section 10). The Ministry of Defence asks the CAG for specific transactional details regarding a recent procurement. The CAG can decline this request under Section 12, as he does not compile these accounts and thus the accounts do not “enable him so to do.”

Process Flowchart

Govt Requests Infoor Assistance

Does CAG compilethese accounts?

No Stop

Yes

Is request reasonable?

No Refuse

Yes

Provide Info / Assist

Practice Questions

Q: Under Section 12, the CAG is required to render assistance in the preparation of which specific document?

A. The Five-Year Plan
B. The Annual Financial Statements
C. The Contingency Fund Report
D. The Public Accounts Committee Report

View Correct Answer

Correct Answer: B. The Annual Financial Statements

Reasoning: Section 12 explicitly mentions rendering assistance in the preparation of “annual financial statements”.

Q: Which of the following Union Territories is entitled to assistance from the CAG under Section 12?

A. Lakshadweep
B. Chandigarh
C. Puducherry
D. Andaman and Nicobar Islands

View Correct Answer

Correct Answer: C. Puducherry

Reasoning: Section 12 applies to the Union, States, and “Union territories having Legislative Assemblies”. Puducherry has a Legislative Assembly.

Q: The CAG’s duty to provide information under Section 12 is limited by which factor?

A. The approval of the President
B. The accounts he is responsible for compiling or keeping
C. The availability of staff
D. The permission of the Supreme Court

View Correct Answer

Correct Answer: B. The accounts he is responsible for compiling or keeping

Reasoning: The section states “in so far as the accounts, for the compilation or keeping of which he is responsible, enable him so to do”.

Frequently Asked Questions

Can the CAG refuse a request for information from a State Government?

Yes, under two conditions: 1) If the request is not “reasonable” (e.g., it is excessively burdensome or irrelevant), or 2) If the information requested pertains to accounts that the CAG is not responsible for compiling (e.g., if he has been relieved of that duty under Section 10).

Does this section apply to all Union Territories?

No. Section 12 specifically mentions “Governments of Union territories having Legislative Assemblies.” Therefore, it applies to UTs like Delhi, Puducherry, and J&K, but not to UTs like Chandigarh or Lakshadweep which do not have their own assemblies.

What is the difference between Section 10 and Section 12?

Section 10 defines the CAG’s duty to compile the accounts (put the data together). Section 12 defines the CAG’s duty to share that information and assist the government in using it for budgeting. Section 12 relies on the work done in Section 10.

Conclusion

Section 12 of the Act underscores the constructive role of the CAG in the Indian financial system. By mandating the provision of information and assistance, it ensures that the executive branch has access to accurate accounting data for effective financial planning and budgeting, while simultaneously defining the boundaries of this assistance to preserve the CAG’s operational efficiency.