CAG (Comptroller and Auditor General of India)

Source: TH

Context: The Supreme Court has issued notice to the Centre on a Public Interest Litigation (PIL) questioning the executive-dominated process of appointing the Comptroller and Auditor General (CAG) of India.

• The petition demands a non-partisan selection committee to safeguard the independence of the CAG, a key constitutional authority.

About CAG (Comptroller and Auditor General of India):

• What is the CAG?

• The CAG is India’s apex constitutional audit authority, known as the watchdog of the public purse. It oversees the financial accountability of both Union and State governments and reports to Parliament.

• The CAG is India’s apex constitutional audit authority, known as the watchdog of the public purse.

• It oversees the financial accountability of both Union and State governments and reports to Parliament.

• Constitutional Article: Articles 148 to 151 (Part V) of the Indian Constitution define the appointment, powers, duties, and audit reporting process of the CAG.

• Appointment Process:

• The President of India appoints the CAG by warrant under his hand and seal (Article 148). Current practice is executive-controlled; calls for reform suggest an independent panel including the Prime Minister, Leader of Opposition, and Chief Justice of India.

• The President of India appoints the CAG by warrant under his hand and seal (Article 148).

• Current practice is executive-controlled; calls for reform suggest an independent panel including the Prime Minister, Leader of Opposition, and Chief Justice of India.

• Term of Office:

• Six years or until the age of 65, whichever is earlier. The CAG is ineligible for any future office under the Government of India or any State after demitting office.

• Six years or until the age of 65, whichever is earlier.

• The CAG is ineligible for any future office under the Government of India or any State after demitting office.

• Service Conditions:

• Salary is equal to that of a Supreme Court judge, determined by Parliament. Administrative expenses are charged on the Consolidated Fund of India, ensuring financial independence. Service conditions for staff are prescribed by the President in consultation with the CAG.

• Salary is equal to that of a Supreme Court judge, determined by Parliament.

• Administrative expenses are charged on the Consolidated Fund of India, ensuring financial independence.

• Service conditions for staff are prescribed by the President in consultation with the CAG.

• Removal Process:

• Can be removed only by the President, following the same grounds and process as a Supreme Court judge. Removal requires a special majority resolution in both Houses of Parliament for proven misconduct or incapacity.

• Can be removed only by the President, following the same grounds and process as a Supreme Court judge.

• Removal requires a special majority resolution in both Houses of Parliament for proven misconduct or incapacity.

• Powers and Functions:

• Audit Authority: Audits all expenditures from the Consolidated Fund of India and State funds. Audits accounts of government corporations, PSUs, and government-funded bodies. Reporting Role: Submits audit reports to the President or Governors, who lay them before Parliament or State Legislatures. Reports are scrutinized by the Public Accounts Committee (PAC). Fiscal Oversight: Certifies the net proceeds of taxes and duties. Reviews government transactions related to debts, advances, and suspense accounts. Legal and Discretionary Audits: Conducts compliance audits, performance audits, and financial audits. Can conduct propriety audits to evaluate the wisdom, faithfulness, and economy in government spending. Role in Accountability: Acts as an agent of Parliament, ensuring public funds are used legally and efficiently. Does not control fund issuance (unlike Britain’s CAG), functioning solely as Auditor-General.

• Audit Authority: Audits all expenditures from the Consolidated Fund of India and State funds. Audits accounts of government corporations, PSUs, and government-funded bodies.

• Audits all expenditures from the Consolidated Fund of India and State funds.

• Audits accounts of government corporations, PSUs, and government-funded bodies.

• Reporting Role: Submits audit reports to the President or Governors, who lay them before Parliament or State Legislatures. Reports are scrutinized by the Public Accounts Committee (PAC).

• Submits audit reports to the President or Governors, who lay them before Parliament or State Legislatures.

• Reports are scrutinized by the Public Accounts Committee (PAC).

• Fiscal Oversight: Certifies the net proceeds of taxes and duties. Reviews government transactions related to debts, advances, and suspense accounts.

• Certifies the net proceeds of taxes and duties.

• Reviews government transactions related to debts, advances, and suspense accounts.

• Legal and Discretionary Audits: Conducts compliance audits, performance audits, and financial audits. Can conduct propriety audits to evaluate the wisdom, faithfulness, and economy in government spending.

• Conducts compliance audits, performance audits, and financial audits.

• Can conduct propriety audits to evaluate the wisdom, faithfulness, and economy in government spending.

• Role in Accountability: Acts as an agent of Parliament, ensuring public funds are used legally and efficiently. Does not control fund issuance (unlike Britain’s CAG), functioning solely as Auditor-General.

• Acts as an agent of Parliament, ensuring public funds are used legally and efficiently.

• Does not control fund issuance (unlike Britain’s CAG), functioning solely as Auditor-General.