A celebration program was organized at Ahmedabad by the office of Comptroller and Auditor General (CAG) to commemorate 150 years of its foundation.

Governor Dr. Shrimati Kamla presiding over the function said that CAG is one of the most important institutions of our democracy, and has its own unique history.

Governor said that the institution (CAG) has skillfully carried out its institutional responsibilities and upkeep the trust of people and exuded faith that the same will carry on.

Governments, both central and state, have taken many steps to strengthen panchayati raj. Many sectors have been made privatized. CAG’s responsibilities, in such condition has increased further, she said.

Speaking as a chief guest of the function Chief Minister Shri Narendra Modi suggested that the central government should form an experts’ commission to develop CAG as even more influential, trustworthy and capable institution. Functioning of CAG should be reshaped by incorporating technology with the auditing process. A stronger face of the institution is much needed now after the introduction of RTI, he said.

Shri Modi said the Britishers, actually formed this institution after the revolt of 1857, to delude Indians that their money will be used inside their country only. In fact, their real agenda was to put watch and control over the activities of East India Company. And so, the credit behind the foundation of this constitutional institution should go to the insurgents of 1857 movement, he said.

Stressing that the reports prepared by CAG should be taken more seriously Shri Modi said that it is unfortunate that CAG reports are now being used just to spread negativity against governing bodies for gaining publicity in media. Its report should also highlight the good financial practices within different states. Such positive roll would earn even more credit to the institution, he said.

Chief Minister also suggested that CAG and CA institute may work hand in hand and if the audit done by CA can be randomly checked by CAG, even more transparency can be imparted within auditing processes. Mentioning the fact that nowadays NGOs are spreading widely and more and more projects are being done through public private partnership and government money is largely being used by private parties, Shri Modi said that now it has become crucial to spread the network of CAG to ensure more accountable and transparent management of the peoples money.

He said that the audit only is not enough; outcome against outlay should also be ensured. He cited the example of Garib Kalyan Mela in this context and said that Gujarat government has successfully extended the benefits of government schemes to the poor and brought qualitative change in public service delivery system.

Dr.Prasenjit Mukherjee, Principal Accountant General gave outline of the 150 years journey of the institution. Chairman of Vidhansabha’s public account committee Shri Mohansinh Rathwa, Chairman for committee for public undertaking Shri Bhupendra Lakhawala, Secretaries and senior officials were present on the occasion.

Government of India should constitute an experts’ commission to modernize and entrust CAG with more powers;

Modi’s suggestion to make CAG more effective as an institution set up under the Constitution

* What was the secret behind the British Sultanate’s role in setting up CAG in 1860?

* CAG should play the role of ‘checks and balances’ in a democratic setup of government;

*The CAG officers’ note in audit paragraph against an official should be included in the latter’s CR to ensure the CAG reports are taken seriously in the government administration;

*CAG should also publish a Report on ‘Best Practices’ in financial management in different states as part of CAG’s positive social responsibility;

*CAG should develop online audit network in Gujarat;

*CAG and CA Institute should coordinate auditing to fulfill their joint social responsibility;

*An effective system should be developed under the provisions of Constitution to audit the use of government grants as public money by NGOs; and

*There should be socio-economic audit of ‘Budget Outcome’ and not just ‘Budget Outlay’.