EDITORIALS & ARTICLES

The Comptroller and Auditor General (CAG) has a very vital role to play.” Explain how this is reflected in the method and terms of his appointment as well as the range of powers he can exercise. (UPSC IAS Mains 2018 General Studies Paper – 2)

  • Article 148 – Provides for an independent office of CAG
  • CAG is head of the Indian Audit and Accounts Department
  • CAG is “guardian of Public Purse”
  • Duty of the CAG is to uphold the constitution of India and laws of Parliament in the field of Finance Administration.
  • CAG acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
  • B.R. Ambedkar said that the CAG shall be the most important Officer under the Constitution of India.
  • CAG is one of the bulwarks of the democratic system of government in India – the others being the Supreme Court, the Election Commission and the Union Public Service Commission – Dr. B. R. Ambedkar

APPOINTMENT AND TERMS

  • CAG appointed by the PRESIDENT OF INDIA under his warrant and seal.
  • Holds office for a period of 6 years or 65 years, whichever is earlier.
  • Resigns by giving the resignation letter to the President.
  • Removal on similar grounds as the Judge of Supreme Court — he can be removed by the President on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehaviour or incapacity.
  • Subscribes before the president an oath or affirmation –
    • to bear true faith and allegiance to the Constitution of India;
    • to uphold the sovereignty and integrity of India;
    • to duly and faithfully and to the best of his ability, knowledge and judgement perform the duties of his office without fear or favour, affection or ill-will; and
    • to uphold the Constitution and the laws

INDEPENDENCE

  • Security of tenure – Do not hold office till the pleasure of the President though appointed by him.
  • Not eligible for further office
  • Salary and other conditions determined by the Parliament. Salary equal to judge of SC
  • Salary or rights cannot be altered to his disadvantage
  • Conditions of service of persons in Indian Audit and Account service prescribed by the President after consultation with CAG
  • Administrative expenses charged upon the Consolidated Fund of India. 

DUTIES AND POWER

  • Article 149 discusses the duties and powers of CAG.
  • The duties are prescribed by the law made by Parliament.
  • CAG Act 1971 was amended in 1976 to separate accounts from audit in the Central Government.
  • Audits accounts of –
  • Consolidated fund of India
  • Consolidated fund of each state
  • Consolidated fund of each Union Territory
  • Audits expenditure of –
    • Contingency fund of each state
    • Public Account of each state
  • Audits all the subsidiary accounts of state and central governments
  • Audits receipts and expenditure of state and central government
  • Audits receipts and expenditure of –
    • Bodies financed by Central and State revenues
    • Government companies
    • Other corporation and bodies required by laws
  • Advises the president to prescription of the form in which accounts of the center and state shall be kept
  • Submits audits and reports to the President who shall place them before both houses of parliament.
  • Submits audits and reports to state governor
  • Ascertains and certifies the net proceeds of any tax or duty.
  • He compiles and maintains the accounts of state government
  • Submits audit reports –
    • Audit report on appropriation
    • Audit report on finance
    • Audit report on public undertakings 

ROLE OF CAG

  • Accountability of the executive in the sphere of financial administration.
  • CAG is an agent of Parliament, conducts audits on behalf of Parliament and is responsible only to the Parliament.
  • The CAG has more freedom with regard to audit of expenditure than with regard to audit of receipts, stores and stock.
  • The CAG has to ascertain the legality of disbursed money.
  • Does Proprietary audit (Proprietary audit is discretionary) – wisdomfaithfulness and economy of government expenditure
  • The secret service expenditure is a limitation on the auditing role of the CAG.
  • CAG has no control over the issue of money from consolidated funds of India.






POSTED ON 29-10-2023 BY ADMIN
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