The Comptroller and Auditor General (CAG) of India is an independent authority established under Article 148 of the Constitution of India. This office is mandated to maintain financial accountability within the government. The CAG is responsible for auditing the accounts of the central and state governments. This role is vital for safeguarding public funds and ensuring transparency in financial administration.
Appointment and Term
The CAG is appointed by the President of India through a warrant under his hand and seal. The term lasts for six years or until the age of 65, whichever comes first. The CAG takes an oath to uphold the Constitution and perform duties impartially. Removal of the CAG is possible by the President on grounds of misbehaviour or incapacity, following a special majority resolution in both Houses of Parliament. The CAG can resign at any time by submitting a resignation letter to the President.
Independence of the CAG
The CAG enjoys independence. Removal is not at the President’s pleasure but follows a constitutional procedure. After leaving office, the CAG cannot hold any further governmental position. The salary of the CAG is equal to that of a Supreme Court judge and is determined by Parliament. Administrative expenses of the CAG’s office are charged to the Consolidated Fund of India, not subject to parliamentary vote (Charged Expenditures). No minister can represent the CAG in Parliament.
Duties and Powers
The CAG has extensive auditing powers. It audits accounts related to the expenditure from the Consolidated Fund of India and state funds. The CAG also audits government corporations and public sector undertakings. It certifies the net proceeds of taxes and duties and audits transactions involving debt and advances. The CAG submits audit reports to the President, who presents them to Parliament.
Role in Financial Oversight
As an agent of Parliament, the CAG ensures public funds are used legally and effectively. It assesses whether the expenditure aligns with governing authority and whether taxpayer money is safeguarded. The CAG conducts both legal audits and propriety audits. Propriety audits evaluate the wisdom and economy of government spending, identifying wastefulness and inefficiency.
International Audits
The CAG of India also participates in international audits. It serves as the External Auditor for the International Atomic Energy Agency (IAEA) from 2022 to 2027, promoting safe nuclear technology use. Additionally, the CAG audits the Food and Agriculture Organization (FAO) from 2020 to 2025, contributing to global food security efforts.
Constitutional Provisions
Several articles in the Constitution define the CAG’s role:
- – Article 148 – Outlines the appointment and conditions of service.
- – Article 149 – Specifies the CAG’s duties and powers.
- – Article 150 – Mandates the form of accounts for the Union and States.
- – Article 151 – Requires the CAG’s reports to be submitted to the President and laid before Parliament.
- – Article 279 – States that the CAG certifies the calculation of “net proceeds.
Strengthening Democracy
The CAG plays a critical role in enhancing democratic accountability. It ensures that government actions are transparent and that public funds are used appropriately. The CAG supports local governance by providing audits and guidance to Panchayati Raj Institutions (PRIs) and urban local bodies. This support helps improve service delivery and accountability at the grassroots level.
Major Scandals Uncovered
The CAG has exposed several high-profile corruption cases:
- – 2G Spectrum Allocation Scam – The CAG reported a loss of ₹1.76 lakh crore due to undervalued spectrum licenses.
- – Coal Mine Allocation Scam
- – Estimated wrongful gains of ₹1.85 lakh crore were brought into light in this case, involving irregular coal block allocations.
- – Fodder Scam – The CAG uncovered fraudulent withdrawals of ₹940 crore in Bihar’s Animal Husbandry Department.
Criticisms of the CAG
Despite its importance, the CAG faces criticisms:
- – Declining Reports – The number of reports tabled has decreased , raising concerns about oversight and transparency.
- – Post-Facto Audits – The CAG primarily conducts audits after expenditures, limiting its ability to prevent financial mismanagement.
- – Limited Role – The CAG’s function is necessary but often seen as limited in scope and perspective.
Need for Reforms
Several reforms are suggested to enhance the CAG’s effectiveness:
- – Amendments to the CAG Act – Updating the Act to reflect modern governance needs.
- – Selection Process – Establishing a collegium for appointing the CAG to ensure impartiality.
- – Capacity Building – Providing training for CAG staff in specialized areas to improve audit quality.
- – Feedback Mechanism – Creating a system for addressing concerns from audited entities.
