Role of Controller General of Accounts and Comptroller and Auditor General of India | Public Administration Optional for UPSC (Notes) PDF Download

Introduction

The Comptroller and Auditor General of India (CAG) holds a vital position in the democratic system of the country, acting as the guardian of the public purse and ensuring financial accountability. This article provides insight into the role, constitutional provisions, appointment process, independence, duties, and challenges faced by the CAG.

Appointment, Term & Removal

The President of India appoints the CAG through a warrant, ensuring independence and security of tenure. The CAG serves a term of six years or until the age of 65, whichever is earlier. The President can remove the CAG only on grounds of proved misbehavior or incapacity, following a resolution passed by both Houses of Parliament with a special majority.

Independence

The Constitution safeguards the independence of the CAG through various provisions. The CAG does not serve at the pleasure of the President and cannot hold further office under the Government of India or any state after retirement. The determination of the CAG's salary, service conditions, and rights cannot be altered to their disadvantage. The administrative expenses of the CAG's office are charged to the Consolidated Fund of India and are not subject to parliamentary voting. Moreover, no minister can represent or take responsibility for the actions of the CAG.

Duties of CAG

The CAG's responsibilities encompass auditing various accounts and financial matters at different levels, ensuring financial transparency and accountability. These duties include:

• Auditing expenditure from the Consolidated Fund of India, Consolidated Fund of each state and Union Territory with a legislative assembly.
• Auditing expenditure from the Contingency Fund of India, Public Account of India, and the corresponding funds of each state.
• Auditing trading, manufacturing, profit and loss accounts, balance sheets, and subsidiary accounts of government departments at the central and state levels.
• Auditing the receipts and expenditure of entities substantially financed by the Central or State revenues, government companies, and other corporations as required by relevant laws.
• Certifying the net proceeds of any tax or duty, with the CAG's certificate being deemed final on the matter.

Reports and Role in Public Accounts Committee (PAC)

The CAG submits audit reports to the President and Governor, who present them to Parliament and state legislatures respectively. The CAG prepares three audit reports for the President, covering appropriation accounts, finance accounts, and public undertakings. Additionally, the CAG acts as a guide to the Public Accounts Committee, assisting in its deliberations, clarifying government actions, and ensuring the implementation of recommended corrective measures.

Challenges and Proposed Reforms

Despite the significant role played by the CAG, certain issues require attention and reform. These challenges include the absence of laid down criteria for appointment, potential conflicts of interest, delays in report submission, and reduced report numbers. To address these concerns, the following reforms have been suggested:

• Ensuring Independence: Establishing qualifications and transparent selection procedures, similar to international standards, can guarantee the independence of the CAG.
• Transparent Appointment Process: Introducing an institutional mechanism to enhance transparency and objectivity in the selection process, such as creating a high-level committee to recommend a panel of three names for the President's consideration.
• Curbing Delays: Providing auditors with expedited access to records and holding heads of departments accountable for delays in sharing information.
• Broadening Scope: Bringing private-public partnerships (PPPs), Panchayati Raj Institutions, and government-funded societies under the purview of the CAG, necessitating amendments to the CAG Act of 1971.
• Leveraging Technology: Embracing technological advancements to improve efficiency, as demonstrated by the establishment of the Centre for Data Management and Analytics, and organizing international conferences to foster partnerships for capacity development in public and environmental audits.

Conclusion

The role of the Comptroller and Auditor General of India is paramount in upholding financial integrity and ensuring government accountability. By implementing necessary reforms and addressing existing challenges, the office of the CAG can continue to fulfill its essential role in India's democratic system. As B.R. Ambedkar rightly conveyed, the CAG is truly the most important office in the Constitution of India.