Que. “The Comptroller and Auditor General (CAG) has a very vital role to play.” Explain how this is reflected in the method and terms of his appointment as well as the range of powers he can exercise. (150 words, 10 marks)

UPSC CSE : 2018

Answer:

Approach:

Introduction

  • Briefly introduce the Comptroller and Auditor General (CAG) and its importance in the Indian governance system.

Body

  • Discuss how the vital role of CAG is reflected in the method and terms of appointment, and the range of powers the CAG can exercise.

Conclusion

  • Summarize the significance of the CAG’s role in ensuring transparency, accountability, and financial propriety in government functioning.

Introduction:

The Comptroller and Auditor General (CAG) under Article 148 is a constitutional authority responsible for auditing the accounts of the Union and State governments in India. As the guardian of public finances, the CAG plays a crucial role in ensuring transparency, accountability, and financial propriety in government functioning.

Body:

Method and Terms of Appointment:

  • Constitutional status: The CAG is a constitutional authority appointed under Article 148 of the Indian Constitution, which ensures its independence and autonomy.
  • Appointment process: The CAG is appointed by the President of India, following the advice of the Prime Minister and the Council of Ministers, which maintains the CAG’s impartiality and political neutrality.
  • Security of tenure: The CAG has a fixed tenure of six years or until the age of 65, whichever is earlier, which provides stability and allows the CAG to carry out its duties without undue pressure.
  • Removal: The CAG can only be removed from office through a process similar to that of a Supreme Court judge- on the grounds of proved misbehavior or incapacity, by a resolution passed by both Houses of Parliament with a special majority. This provision safeguards the CAG’s independence.

Range of Powers:

  • Auditing: The CAG audits all receipts and expenditures of the Union and State governments, as well as government-owned companies and corporations, ensuring proper accountability of public finances.
  • Reporting: The CAG submits its audit reports to the President or the Governor, who then places the reports before the Parliament or the State Legislature, respectively. This allows for legislative scrutiny of government finances and promotes transparency.
  • Disallowance: The CAG can disallow any expenditure that violates the constitution or the law and surcharge the responsible officials.
  • Accounting standards: The CAG is responsible for prescribing the accounting standards and principles for government entities, which ensures uniformity and reliability in financial reporting.
  • Advisory role: The CAG can also provide advice to the government on matters related to public finance, making it an important source of expertise.

Conclusion:

The CAG plays an indispensable role in safeguarding public finances, promoting transparency, and holding the government accountable for its financial decisions. Through its auditing, reporting, and advisory functions, the CAG serves as a cornerstone of fiscal responsibility and good governance in India.

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UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

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