'CAG has the right to examine government policies'

New Delhi: Rebutting the criticism by the government and the Congress party on coal blocks allocation, the Comptroller and Auditor General (CAG) on Wednesday said it has the mandate to examine and scrutinise public policies.

"...policies of a government do not emerge from vacuum but a culmination of a due diligence process that involves faithful examination and analysis of empirical evidence on the ground, higher values of governance, feasibility of implementation, materiality of financial costs and perceivable benefits based on current and reasonably predictable facts", CAG sources said.

As there is a close relationship between the development of public policy and its implementation and financial implications, the sources said, "It is unrealistic to expect that...C&AG's audit findings will not cast any shadow on the policy itself. Let us be real".

Rebutting the criticism over the coalgate, the CAG said it had the mandate to examine and scrutinise public policies.

They were responding to criticism of the official auditor by the government and also an article written by Congress spokesperson Manish Tiwari questioning CAG's mandate to examine government policies.

CAG's findings that allocation of 57 coal blocks resulted in a loss of Rs 1.86 lakh crore to the exchequer evoked sharp reaction from the government and the Congress party. Parliament has also seen turbulence over the report.

Prime Minister Manmohan Singh had questioned the CAG findings on coal blocks allocation describing them as "disputable and flawed".

"The policy of allocation of coal blocks to private parties, which the CAG has criticised, was not a new policy introduced by the UPA. The policy has existed since 1993 and previous government also allocated coal blocks in precisely the manner that the CAG has now criticised," he had said.

(For updates you can share with your friends, follow IBNLive on Facebook, Twitter, Google+ and Pinterest)