Model Answer
0 min readIntroduction
The Comptroller and Auditor General (CAG) of India is a constitutional authority, envisioned as the ‘guardian of the public purse’. Established by Article 148 of the Constitution, the CAG audits all receipts and expenditures of the Union and State governments, ensuring financial propriety and accountability. The CAG’s role is particularly vital in a parliamentary democracy, serving as an independent check on executive action. The method of appointment and the breadth of powers granted to the CAG are deliberately designed to ensure its independence and effectiveness, reflecting its crucial position in the Indian governance structure.
Appointment of the CAG: Ensuring Independence
The appointment process itself is a testament to the importance attached to the CAG’s independence.
- Constitutional Provision: Article 148(1) states the CAG is appointed by the President of India by a warrant under his hand and seal.
- Parliamentary Involvement: While the President formally appoints, the CAG is selected from a panel of individuals who meet specific qualifications (as outlined in Article 148(2)). This panel is prepared by the Public Accounts Committee (PAC) of Parliament.
- Qualifications: The individual must be a Chartered Accountant, or hold a degree in any university recognized by law, and possess at least ten years of experience in public accounts or auditing.
- Term and Removal: The CAG holds office for a term of six years or until attaining the age of sixty-five years, whichever is earlier (Article 148(3)). Removal requires a similar process as a Supreme Court judge – a petition to Parliament.
This process, involving parliamentary scrutiny and a secure tenure, shields the CAG from executive interference, fostering impartiality.
Powers of the CAG: A Comprehensive Audit
The CAG’s powers are extensive, enabling a thorough examination of government finances.
Audit Powers
- Audit of Accounts: The CAG audits all accounts related to public money, including expenditure from the Consolidated Fund of India and the Public Account.
- Propriety Audit: Beyond verifying financial accuracy, the CAG conducts propriety audits, assessing whether expenditure aligns with established rules and regulations.
- Performance Audit: Introduced in the 1990s, performance audits evaluate the efficiency and effectiveness of government programs and projects. This assesses whether resources were used optimally to achieve desired outcomes. (Example: CAG’s audit of the National Rural Employment Guarantee Scheme (NREGS) highlighted issues of delayed wage payments and inadequate monitoring.)
Reporting Powers
- Audit Reports: The CAG submits audit reports to the President, who then causes them to be laid before both Houses of Parliament. These reports highlight irregularities, inefficiencies, and instances of financial mismanagement.
- Supplementary Reports: The CAG can submit supplementary reports to address urgent issues or provide updates on previous findings.
- Direct Reporting: In certain cases, the CAG can directly report to Parliament on matters of significant public interest.
Other Powers
- Duty to Furnish Information: The CAG has the power to requisition information from government departments and agencies.
- Access to Records: The CAG has unrestricted access to all government accounts, records, and documents.
Recent Developments: The introduction of Information Technology has enabled the CAG to utilize data analytics and automated tools for more efficient and comprehensive audits. The CAG is also increasingly collaborating with international audit organizations to share best practices.
| Power | Description | Constitutional Basis |
|---|---|---|
| Audit of Accounts | Examination of financial transactions | Article 149 |
| Propriety Audit | Assessment of expenditure against rules | Derived from Article 149 |
| Performance Audit | Evaluation of program effectiveness | Evolved through practice |
Conclusion
The CAG’s role is undeniably vital for ensuring financial accountability and transparency in governance. The carefully crafted appointment process, coupled with the extensive audit and reporting powers, safeguards its independence and effectiveness. The CAG’s reports serve as a crucial check on executive power, prompting corrective action and strengthening public trust. Continued strengthening of the CAG’s capabilities, particularly in areas like data analytics and forensic auditing, will be essential to address the evolving challenges of public finance management in India.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.