The Centre today expressed its willingness to work with CAG to erase the impression of adversaries in an attempt to restore trust and confidence in all institutions. Addressing a Comptroller and Auditor (CAG) conference in the national capital, Finance Minister P Chidambaram said, the official auditor and the government have been cast as adversaries to each other in the aftermath of recent audit findings.
Chidambaram said that the CAG has played a key role in addressing issues of good governance and the government is obliged to take necessary actions to address gaps in governance. He said since policymaking by government is often through trial and error and audit is a post decision exercise, hence the both come up as adversaries to each other.
Highlighting that institutions and individuals are in learning process, Chidambaram said, recent opinion of the Supreme Court has brought about a great degree of clarity. The Supreme Court in its September 27 opinion had said that auctions are not the only permissible method for disposal of natural resources across sectors.
Chidambaram said while tax policies are prerogative of the government, tax laws are prerogative of Parliament. He said the government would work to soon put in place a modern financial reporting system. He further said that through the Finance Act 2012, Parliament entrusted to the CAG the review of compliance of the Fiscal Responsibility and Budget Management (FRBM) Act, 2003.