Comptroller and Auditor General: Role, Powers, and Importance for Exams

Constitutional Basis and Appointment

The office of the Comptroller and Auditor General of India is established by the Constitution of India. Article 148 provides for an independent office of the CAG. The President of India appoints the CAG by warrant under his hand and seal. The CAG takes an oath before the President or a person appointed by him. This oath is to bear true faith and allegiance to the Constitution and to faithfully perform the duties of the office. The term of office for the CAG is six years or until he attains the age of 65 years, whichever is earlier. He can resign by addressing his resignation to the President. He can also be removed by the President on the same grounds and in the same manner as a judge of the Supreme Court. This ensures the independence of the office from the executive.

Duties and Functions

The duties and functions of the CAG are laid down in Article 149 of the Constitution. The Parliament enacted the CAG's (Duties, Powers and Conditions of Service) Act, 1971, to further elaborate on these. The CAG audits all receipts and expenditures of the Union and State governments. This includes bodies and authorities substantially financed from the Consolidated Fund of India and of each state. He also audits the accounts of government companies and certain other corporations and bodies when required by law. The CAG ascertains whether money shown in the accounts as having been disbursed was legally available for and applicable to the service or purpose to which they have been applied. He also ensures that the expenditure conforms to the authority which governs it. His audit reports are submitted to the President, who causes them to be laid before each House of Parliament.

Independence and Security

The Constitution ensures the independence of the CAG in several ways. The CAG is provided with security of tenure; he can only be removed by the President on the basis of a resolution passed by both Houses of Parliament with a special majority. His salary and other service conditions are determined by Parliament and cannot be varied to his disadvantage after his appointment. The administrative expenses of the office of the CAG, including all salaries, allowances, and pensions payable to persons serving in that office, are charged upon the Consolidated Fund of India. This means they are not subject to the vote of Parliament. Further, the CAG is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office. This prevents any future favour-seeking and ensures impartiality.

Role as Public Purse Guardian

The CAG is often described as the 'Guardian of the Public Purse' and the 'Chief Accountant' and 'Chief Auditor' for both the Union and the states. He acts as a guide, friend, and philosopher to the Public Accounts Committee (PAC) of the Parliament. His audit reports bring to light cases of illegal, irregular, improper, or wasteful expenditure. These reports are then examined by the PAC, which plays a crucial role in holding the government accountable. The CAG's role is not just to detect errors but also to ensure that the executive adheres to parliamentary financial control. He helps Parliament in exercising its control over the executive in financial matters. This makes his office a cornerstone of democratic accountability and transparency in governance.

Important Keywords Explained

Consolidated Fund of Indiaconcept

This is the most important of all government accounts. All revenues received by the Government of India, all loans raised by it, and all money received by it in repayment of loans form part of the Consolidated Fund of India. All expenditures of the government are met from this fund. No money can be drawn from this fund without parliamentary authorization.

Public Accounts Committee (PAC)organization

The PAC is one of the parliamentary committees that examines the annual audit reports of the CAG. It consists of 22 members (15 from Lok Sabha and 7 from Rajya Sabha). Its primary function is to examine the accounts showing the appropriation of sums granted by Parliament for expenditure and the annual finance accounts of the government. The CAG acts as a guide to the PAC.

Article 148act

This article of the Constitution of India provides for the establishment of the office of the Comptroller and Auditor General of India. It outlines the appointment, oath, and conditions of service for the CAG, ensuring the independence of this crucial constitutional authority.

Additional Facts & Context

• The first CAG of India was V. Narahari Rao, serving from 1948 to 1954.
• The CAG audits the accounts of local bodies if requested by the President or Governor.
• The salary of the CAG is equivalent to that of a judge of the Supreme Court.
• The CAG is not eligible for further government office after retirement.
• The CAG's office is part of the 'watchdog' institutions of the Indian democracy.