The Comptroller and Auditor General (CAG) is a constitutional authority who oversees the Indian Audit and Accounts Department (IA&AD), together referred to as the Supreme Audit Institution of India (SAI). The CAG carries the significant responsibility of inspecting and auditing all expenditures made by both Central and State Governments, as well as any organization or body substantially funded by the government.
As sole steward of the public treasury, the position of CAG is essential for the financial oversight of the government’s affairs. This critical role was underscored by Dr. B.R. Ambedkar who said that the CAG should be the most important Officer under the Constitution of India.
Appointment and Removal of the CAG
Article 148 of the Constitution provides for an independent CAG office. The president of India, by a warrant under his hand and seal, appoints the CAG. Once appointed, the CAG enjoys the security of tenure and can only be removed by the president following a defined constitutional procedure.
The CAG’s term is for six years or until reaching the age of 65 years, whichever is earlier. Removal from office is only possible with a majority decision from each House of Parliament, requiring a two-thirds majority of members present and voting in the same session. The grounds for removal include proven misbehavior or incapacity.
Role of Audits in Indian Democracy
Audits play a crucial role in maintaining transparency and accountability within a democratic setup like India. They instill confidence in the public about how taxpayer money is used, ensuring transparency in government operations and holding government authorities accountable for their financial actions, thus averting misuse of public funds.
Audits also detect errors, discrepancies, and potential fraudulent activities, ensuring correctional measures are taken promptly. They are essential in verifying financial activities alignment with the budget, thus preventing overspending or unauthorized expenditures.
Efficiency and Effectiveness of Audit
On the efficiency front, audits identify inefficiencies in processes, allowing for improvements and cost-saving measures. Further, they assess the effectiveness of government programs and initiatives, guiding future policy decisions for better outcomes.
The audit reports offer valuable insights to policymakers for informed decision-making and better governance. Audits following global standards enhance the country’s standing in international financial communities, facilitating collaboration and partnerships.
It’s worth noting that while the Constitution envisions CAG as both Comptroller and Auditor General, CAG primarily functions as an Auditor General only, lacking control over fund disbursement, being involved only during the audit phase, after the expenditure has occurred.
Suggestions for the Way Forward
To enhance the efficacy of the auditing process, it is suggested that government departments streamline their processes for timely and comprehensive reporting, aiding in faster completion of audits.
Adopting digital advancements can expedite audit procedures, reducing manual intervention and accelerating report generation. Clear timelines and protocols for the submission of audit reports to Parliament are crucial for timely presentation and discussion.
Extending accessibility of audit reports through online platforms can promote greater public scrutiny and understanding, reinforcing transparency and accountability.
Finally, past examinations from the UPSC Civil Services Examination provide a rich source of insight into the critical role and powers of the CAG in ensuring efficient use of public funds and adherence to intended purposes.