The Comptroller and Auditor General (CAG) occupies a pivotal position in ensuring transparency, accountability, and fiscal prudence within a nation’s governance framework. The significance of this role is distinctly manifested in both the method and terms of the CAG’s appointment, as well as the expansive range of powers vested in this constitutional office. The CAG is appointed with utmost care, often through a consultative process involving the executive and legislative branches, ensuring impartiality and independence. The fixed tenure and safeguard against removal except through impeachment enhance the CAG’s autonomy, fostering fearless scrutiny. Furthermore, the CAG is armed with a comprehensive array of powers, ranging from auditing public accounts and government expenditures to investigating financial irregularities. These powers empower the CAG to act as a vigilant watchdog, contributing substantially to the checks and balances essential for the proper functioning of a democratic and accountable government. The methodical appointment process and extensive powers granted underscore the CAG’s indispensable role in upholding financial integrity and democratic values.
Tag: Appointment to various Constitutional posts, powers, functions, and responsibilities of various Constitutional Bodies.
Decoding the Question:
- In the Introduction, try to briefly write about the Comptroller and Auditor General of India (CAG).
- In Body,
- First, discuss the provisions to safeguard and ensure the independence of CAG.
- Second, discuss the duties and functions of the CAG.
- In Conclusion, try to write the overall importance of the Comptroller and Auditor General (CAG).
Answer:
Article 148 of the Indian Constitution envisages the Comptroller and Auditor General of India (CAG) as the head of the Indian Audit and Accounts Department. According to Dr. B R Ambedkar, the CAG shall be one of the most important offices under the Constitution of India. It acts as the guardian of the public purse and controls the entire gamut of financial administration.
The Constitutional Safeguards to Ensure the Independence of CAG:
- He is provided with the security of tenure and can be removed by the President only by the procedure mentioned in the Constitution. Though the President appoints him, he does not hold his office till the pleasure of the President.
- He is not eligible for appointment under the Government of India or any State after he ceases to hold his office.
- His salary and other service conditions are determined by the Parliament, which is equal to that of a judge of the Supreme Court and cannot be altered to his disadvantage after his appointment.
- No minister can represent the CAG in the Parliament and can be called upon to take any responsibility for any actions done by him.
Role of CAG:
- Conducts legal, regulatory, and propriety audits.
- Audits expenditures from Contingency Funds, Public Accounts, Consolidated Fund of India, and the states.
- He certifies and ascertains the net proceeds (the proceeds of a tax or a duty minus the cost of collection) of any tax or duty (Article 279) which are final.
- Submits audit reports to the President and Governor for legislative scrutiny.
- Audits the receipts and expenditures of Government companies and entities substantially financed from the Central or State revenues.
- He audits all transactions of the Central and State governments related to debt, sinking funds, advances, deposits, suspense accounts, and remittance business. He also audits receipts, stock accounts, and other accounts when required by the President.
- Acts as a guide to the Public Accounts Committee of Parliament ensuring transparency in financial administration.
- CAG also maintains and compiles the accounts of the State governments.
The Comptroller and Auditor General of India’s role as the highest auditing authority is intrinsically linked to the efficacy of government policies by keeping a watch on the financial aspect of Good Governance, thereby preserving the democratic ethos. The Comptroller and Auditor General of India examine the propriety, legality, and validity of all expenses incurred by the government. It only works as an auditor not as a comptroller, unlike British CAG. The reports of CAG were of paramount importance in uncovering the 2G spectrum scandal and the 2010 Commonwealth Games corruption scandal, etc.
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