COMPTROLLER AUDITOR GENERAL OF INDIA (CGI)
1.Context
Shedding the shackles of foreign domination, India awoke to “life and freedom” on August 15, 1947. On January 26, 1950, the Constitution of India came into effect. Thus ensued our democratic journey, emphasising the principles of individual rights, equality, accessibility, rule of law, separation of powers, universal suffrage and public participation
2. Comptroller and Auditor General of India (CAG)
- The Comptroller and Auditor General (CAG) of India is a constitutional authority responsible for auditing and overseeing the financial operations of the Government of India and state governments. The role of the CAG is defined in the Constitution of India, primarily in Article 148
- The Comptroller and Auditor General of India (CAG) plays a pivotal role within the democratic framework, ensuring transparency, accountability, and financial integrity in the government's operations.
- It actively contributes to upholding the separation of powers between the legislature and executive by verifying that the government's financial activities align with legislative intentions.
- Through its audit discoveries and recommendations, the CAG advocates for good governance practices, aiding governments in streamlining operations, minimizing inefficiencies, and adhering to financial discipline.
- In the evolving landscape of India's democracy, the CAG's role becomes increasingly crucial, promoting good governance and safeguarding the interests of the people.
- Notably, the 73rd and 74th Constitutional amendments represent a significant advancement in India's democratic structure, establishing tiers of self-governance below the state level.
- The roots of organized local governance in India trace back to the historical "Janpadi and Pancha" system. Looking ahead to independent India, the recommendations of the 1958 Balwant Rai Mehta Committee laid the groundwork for a three-tier structure for rural self-governance, ultimately materializing in the 73rd and 74th amendments.
3. Appointment and Tenure of CAG
- The President of India appoints the CAG.
- The appointment is made based on the recommendation of the Prime Minister, who consults with other authorities
- The President is required to consult with:
- The Speaker of the Lok Sabha (House of the People).
- The Vice President, who is also the Chairman of the Rajya Sabha (Council of States).
- The Leader of the Opposition in the Lok Sabha.
- The qualifications for the appointment of the CAG are similar to those of a judge of the Supreme Court
- The CAG holds office for a term of six years from the date they assume office or until they attain the age of 65, whichever is earlier.
- The CAG can be removed from office only in the manner and on the grounds prescribed for the removal of a judge of the Supreme Court
- The constitutional provisions related to the appointment of the CAG are primarily outlined in Article 148 of the Indian Constitution
4. Functions and Powers
- The primary function of the CAG is to audit the accounts related to the revenue and expenditure of the Government of India and state governments
- The CAG also audits the accounts of bodies and authorities substantially financed by the government
- The CAG audits the accounts of public sector undertakings and other entities where the government has a substantial financial stake
- The CAG audits the accounts of various statutory bodies and authorities to ensure compliance with financial regulations and legal requirements
- The audit reports prepared by the CAG are submitted to the President of India in the case of the central government and to the Governors in the case of state governments.
- These reports are then laid before each House of Parliament or the State Legislature.
- The CAG operates independently and is not subject to the control or influence of the executive in the performance of their duties.
- The CAG has the authority to access all records, books, and documents related to the accounts being audited
5. CAG of India vs CAG of the United Kingdom
| Subject | CAG of India | CAG of the United Kingdom |
|---|---|---|
| Constitutional Status | Constitutional authority | Not a constitutional office, part of the National Audit Office (NAO) |
| Appointment | Appointed by the President of India | Appointed by the monarch on the advice of the Prime Minister |
| Independence | Independent | Emphasizes independence but appointment process may raise questions |
| Functions | Audits government accounts, conducts performance audits | Audits central government departments, agencies, and public bodies |
| Reports | Submitted to the President/Governors, laid before Parliament/State Legislatures | Reports directly to the UK Parliament |
| Legal Framework | Outlined in the Constitution of India | Based on various statutes, operates under the Public Audit Act 2001 |
| Role in Public Accounts Committees (PACs) | Plays a crucial role in assisting PACs at central and state levels | Supports the UK Parliament's Public Accounts Committee |
6.How Independently does the Office of CAG Function?
- The office of the Comptroller and Auditor General (CAG) is designed to function independently to ensure impartiality and integrity in auditing government expenditures. The independence of the CAG's office is crucial for maintaining transparency, accountability, and public trust in the financial management of the government
- The CAG is a constitutional authority, and its independence is enshrined in the Constitution of India. This constitutional status provides a strong foundation for the CAG's autonomy.
- The CAG is appointed by the President of India based on the recommendations of the Prime Minister in consultation with other authorities. The appointment process aims to ensure the CAG's impartiality and independence
- The CAG holds office for a fixed term of six years or until the age of 65, whichever is earlier. This security of tenure helps insulate the CAG from external pressures
- The conditions of service of the CAG, once appointed, cannot be varied to their disadvantage. This ensures that the CAG can perform their duties without fear of adverse changes in service conditions
- The CAG operates independently and is not subject to the control or influence of the executive in the performance of their duties. This separation is crucial for conducting objective and unbiased audits.
7.What is the Public Accounts Committee (PAC)?
- The Public Accounts Committee (PAC) is a parliamentary committee that plays a crucial role in overseeing government expenditures and ensuring financial accountability.
- Its primary function is to examine the audit reports prepared by the supreme audit institution (such as the Comptroller and Auditor General, CAG) and to scrutinize the government's financial transactions, policies, and programs.
- Members of the PAC are typically drawn from the legislature and reflect the political composition of the parliament or legislative body
- The PAC is headed by a Chairperson, who is usually a member of the opposition party to ensure impartiality.
- The primary mandate of the PAC is to examine the audit reports produced by the supreme audit institution, which highlights instances of financial irregularities, inefficiencies, or non-compliance with laws and regulations.
- The PAC scrutinizes government expenditures to ensure that public funds are used efficiently and effectively
- The PAC often follows up on its recommendations to ensure that the government has taken appropriate actions in response to identified issues
- The PAC enhances public accountability by holding the government accountable for its financial decisions and ensuring transparency in the use of public funds
- The PAC plays a critical role in upholding democratic principles by ensuring that public funds are utilized in the best interest of the citizens and that the government is held accountable for its financial decisions
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For Prelims: Indian Polity and Governance For Mains: General Studies II: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies |
Source: indianexpress
