Finance Minister P Chidambaram on Tuesday said he intends 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 here, Chidambaram said the official auditor and the government have been cast as adversaries to each other in the aftermath of recent audit findings.

"Unfortunately, however, some dissonance has crept into the public discourse and for reasons which are inexplicable, the CAG and the government have been cast as adversarial to each other. Perhaps this in the nature in the functions of the government and CAG," Chidambaram said.

"It is my intention and desire as Minister of Finance to work with CAG to erase the impression of adversaries and restore trust and confidence in all institutions of government," he added.

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.

"Policymaking is often through trial and error. Decisions are taken often without full info and in an environment of uncertainty. Audit is a post decision exercise. Perhaps because of the nature of functions, they are cast as adversaries to each other," he added.

Highlighting that institutions and individuals are in learning process, Chidambaram said, "The 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.