The Comptroller and Auditor General (CAG) of India has flagged financial lapses worth ₹573 crore in the functioning of Indian Railways. The details were published in the ‘Union Government (Railways) – Compliance Audit Report’, tabled in Lok Sabha.
- The CAG’s compliance audit report has outlined discrepancies in 25 cases across different zonal railways and independent rail projects.
- C&AG noted that the northern railway zone did not comply with railway board’s directives to recover license fee at the rate of 6% of land value from five government-aided schools.
Comptroller and Auditor General (CAG) of India
- Institutional Role: He is the head of the Indian Audit and Accounts Department.
- He is the “Guardian of the Public Purse” and controls the entire financial system of the country at both the levels–the Centre and the state.
- Constitutional Duty: His duty is to uphold the Constitution of India and laws of Parliament in the field of financial administration.
- Parliamentary Support: Acts as a guide, friend, and philosopher to the Public Accounts Committee.
- Significance: Described by Ambedkar as a bulwark of Indian democracy, along with the Supreme Court, Election Commission, and UPSC.
Major Scandals Uncovered by the CAG
- 2G Spectrum Allocation Scam: Loss of ₹1.76 lakh crore due to allocation of 2G spectrum licenses at undervalued prices, bypassing auction, and causing significant losses to the exchequer
- Commonwealth Games (CWG) Scam: Embezzlement and mismanagement during the 2010 Commonwealth Games, with losses over ₹90 crore due to inflated contracts and corruption in the organizing committee.
- Delhi Liquor Policy Scam: Irregularities in the excise policy (2021–2022) by the Delhi government, causing a revenue loss of around ₹2,002 crore as per recent CAG reports
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Key Features of the Office of C&G
Appointment and Tenure
- Article 148 provides for an independent office of the CAG.
- CAG is appointed by the President under his hand and seal.
- Can be removed only like a Supreme Court judge.
- Must take an oath before assuming office, as per the Third Schedule.
- Salary and service conditions are determined by Parliament; cannot be altered to his disadvantage after appointment.
- Not eligible for further office under Central or State Government after retirement.
- Administrative powers and service conditions in the Indian Audit and Accounts Department are prescribed by the President in consultation with the CAG.
- Administrative expenses of the CAG are charged upon the Consolidated Fund of India.
Article 149 – Duties and Powers
- CAG performs duties and exercises powers related to Union and State accounts as prescribed by Parliament.
- Until such law is made, continues duties of the Auditor-General of India under pre-Constitution laws.
Article 150 – Form of Accounts: Accounts of the Union and States are kept in the form prescribed by the President on the advice of the CAG.
Article 151 – Audit Reports
- CAG submits Union audit reports to the President, who lays them before Parliament.
- State audit reports are submitted to the Governor, who lays them before the State Legislature.
Article 279 – Net Proceeds Certification
- “Net proceeds” of taxes are certified by the CAG; this certification is final.
- Parliament or the President may provide the manner of calculating such proceeds when assigned to States.
Third Schedule : Section IV prescribes the oath or affirmation to be made by the Judges of the Supreme Court and the CAG upon assuming office.
Sixth Schedule
- Specifies that accounts of District or Regional Councils should be kept in a form prescribed by the CAG and audited accordingly.
- Reports are to be submitted to the Governor for laying before the Council.
International Audits by CAG
International Atomic Energy Agency (IAEA), Vienna
- Tenure: 2022–2027
- Replaced: Audit Board of Republic of Indonesia
- Role: External Auditor of the UN’s nuclear watchdog promoting peaceful nuclear use.
Food and Agriculture Organization (FAO), Rome
- Tenure: 2020–2025
- Replaced: SAI Philippines
- Role: External Auditor of UN’s agency for food security and hunger eradication.
- Post: Director of External Audit (DEA) stationed in Rome.
World Health Organization (WHO), Geneva
- Tenure: 2020–2023
- Replaced: SAI Philippines
- Role: External Auditor for global health agency coordinating health emergencies.
- Post: Director of External Audit (DEA) stationed in Geneva.
Organization for Prohibition of Chemical Weapons (OPCW), Hague
- Tenure: 2021–2023
- Replaced: SAI United Kingdom
- Role: External Auditor for implementing the Chemical Weapons Convention.
CAG of India vs CAG of Britain
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Britain |
- The CAG of India functions only as an auditor.
- In India, the CAG has no control over the release of funds and audits expenditures only after they occur.
- Reports directly to the President or Governors, who table them in Parliament or State Legislatures.
- The Indian CAG focuses on the legality, propriety, and performance of public spending.
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- The CAG of Britain serves both as a comptroller (approving fund releases) and as an auditor.
- In contrast, the British CAG must approve fund withdrawals before any government spending takes place.
- Reports to the UK Parliament through the Public Accounts Committee.
- The British CAG emphasizes auditing for economy, efficiency, and effectiveness in government expenditure.
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