Model Answer
0 min readIntroduction
The Comptroller and Auditor General (CAG) of India, a constitutional body established by Article 148 of the Constitution, serves as the supreme audit institution of the country. It audits all government accounts and ensures the accountability of public expenditure. The CAG’s effectiveness hinges critically on its autonomy, allowing it to function without undue influence. However, in recent years, concerns have been raised regarding the erosion of this autonomy, impacting its ability to discharge its constitutional mandate effectively. The recent debates surrounding CAG reports on various schemes and projects highlight the need for a critical examination of its functioning and potential areas for improvement.
Major Lacunae in the Functioning of the CAG
1. Administrative Challenges
- Shortage of Manpower & Resources: The CAG often faces a shortage of qualified personnel and adequate resources, hindering its ability to conduct thorough and timely audits. This is particularly acute in state CAG offices. (Based on knowledge cutoff 2024)
- Limited Technical Expertise: Auditing increasingly complex government projects (e.g., infrastructure, IT) requires specialized technical expertise, which the CAG sometimes lacks.
- Delayed Recruitment Processes: Lengthy and cumbersome recruitment processes contribute to the manpower shortage.
2. Legislative Interference & Limitations
- Lack of Statutory Backing for Directions: While the CAG can point out irregularities, it lacks the statutory power to enforce its recommendations directly. Its findings are often advisory in nature.
- Parliamentary Oversight & Political Influence: The Public Accounts Committee (PAC) scrutinizes CAG reports, and political considerations can sometimes influence the PAC’s recommendations.
- Limited Access to Information: Access to certain sensitive documents and information can be restricted, hindering the CAG’s audit process.
3. Executive Interference & Challenges
- Delays in Submission of Audit Reports: Government departments sometimes delay submitting necessary documents and information, obstructing the audit process.
- Attempts to Dilute CAG’s Powers: There have been instances of attempts to curtail the CAG’s powers through administrative changes or legislative amendments.
- Post-Retirement Appointments: The practice of offering post-retirement appointments in government to CAG officials raises concerns about potential conflicts of interest and compromises the institution’s independence.
4. Procedural & Methodological Issues
- Focus on Procedural Irregularities: CAG reports sometimes focus excessively on procedural irregularities rather than substantive financial losses or policy failures.
- Lack of Cost-Benefit Analysis: Audits often lack a comprehensive cost-benefit analysis, making it difficult to assess the overall impact of government spending.
- Limited Use of Technology: The CAG’s adoption of modern auditing technologies (e.g., data analytics, AI) has been relatively slow.
Measures for Strengthening the CAG
- Constitutional Amendment: Consider a constitutional amendment to explicitly guarantee the CAG’s functional autonomy and protect it from executive interference.
- Statutory Powers: Grant the CAG statutory powers to enforce its recommendations and impose penalties for non-compliance.
- Increased Funding & Manpower: Substantially increase the CAG’s budget and manpower, particularly in state offices, and streamline recruitment processes.
- Capacity Building: Invest in training and capacity building programs to enhance the technical expertise of CAG officials.
- Enhanced Transparency: Ensure greater transparency in the CAG’s audit process and make its reports more accessible to the public.
- Independent Selection Committee: Establish an independent selection committee for appointing CAG officials, free from political influence.
- Strengthening PAC: Ensure that the PAC functions independently and impartially, and its recommendations are based on objective evidence.
- Leveraging Technology: Embrace modern auditing technologies to improve efficiency and effectiveness.
Recent Developments: The introduction of the Public Financial Management System (PFMS) in 2013 aimed to improve financial reporting and transparency, potentially aiding CAG’s audit process. However, its full potential remains unrealized.
Conclusion
The CAG is a vital pillar of India’s democratic governance, ensuring accountability and transparency in public finance. While the institution enjoys constitutional protection, several lacunae threaten its autonomy and effectiveness. Addressing these challenges through constitutional amendments, increased funding, capacity building, and enhanced transparency is crucial. A strengthened CAG will not only safeguard public funds but also promote good governance and public trust. Continuous evaluation and adaptation to evolving governance landscapes are essential for the CAG to remain a relevant and effective institution.
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.