Our Economic Bureau

New Delhi, April 16: Prime Minister Atal Bihari Vajpayee has asked the Comptroller and Auditor General (CAG) to devise norms for auditing the regulatory authorities.

Inaugurating the 21st Conference of the Accountant General here on Monday, Mr Vajpayee said the economic reforms programme entail greater reliance on independent regulatory authorities, “their accountability to the legislative needs to be ensured.”

The prime minister further said that, “you will need to devise appropriate norms and methods to audit the regulatory authorities, where these audits are entrusted to you.”

Referring to disinvestment of PSUs, Mr Vajpayee underlined the need for a debate on the nature of government accountability, “for companies transferred to private management but where government continues to hold a substantial stake.”

He added: “while some control may be necessary in such cases, it should not act as detriment to the entrepreneurial initiative.” Describing the corruption as the biggest enemy of development, Mr Vajpayee urged the CAG and the accountant generals to play their watchdog role energetically.

He said that need for accountability has increased and not decreased with the onset of economic reforms. Stating that the government was now expected to play the role of a promoter and a facilitator of economic progress, Mr Vajpayee said that, “this change does not in any way diminish the importance of transparency and accountability, which are the life-breath of a democracy.” He added that both the Centre and the states would have to continue to play a critical role in making education, health-care, drinking water, housing and other basic amenities available to all citizens, especially to the poor and the underprivileged.

The prime minister also suggested that CAG reports of every ministry should be sent to the parliamentary standing committee of the ministry for a preliminary scrutiny. This, according to Mr Vajpayee, would ensure examination of CAG report by those who have some understanding of the working of the particular ministry. Speaking on the occasion, finance minister Yashwant Sinha has said that a distinction should be made between the business of government and government in business.

He added that while there were many instances where the government business must reduce, “there could be little dispute that it should lead to the strengthening of the business of the government — governance.” He stressed that “strengthening of government and audit must go hand in hand”.

Mr Sinha said this while referring to “some misapprehensions that as liberalisation takes root and spreads, the business of government reduces, and there may be a reduction in the mandate of CAG.”

CAG VK Shunglu in his address lamented the absence of corrective action on audit reports where the comments were on individual lapses and inaction. He also underlined the need for setting up a quasi-judicial body such as the Central Administrative Tribunal for the purpose.

Earlier, the CAG handed over a cheque of Rs 1.09 crore as contribution of the members of the Indian Audit and Accounts Department for relief work in Gujarat.