Should the discretionary grants be subject to AG audit?
Many funds are placed at the discretion of Chief Ministers / Prime Minister / other dignitaries against which activists have raised voices for introducing some effective safeguards against misuse of discretionary grants. In response to a PIL, the AG (Audit) Punjab has enclosed “Theme audit report” which states that AG (Audit) Punjab is not authorized to audit the accounts of the, Clubs, Colleges or other NGOs to whom the grants are issued by the State Government out of public funds. However, under “The Comptroller and Auditor General Duties/Powers and Conditions of Service Act, 1971”, the Governor can direct the audit of the accounts of such NGOs also. Similar situation exists in most states of the country.