Context:
The Delhi High Court questioned the Aam Aadmi Party (AAP) government for “dragging its feet” on the tabling of the reports of the Comptroller and Auditor-General (CAG) over the city administration before the Assembly.
Comptroller and Auditor General (CAG) of India
Constitutional Mandate
- The CAG is the head of the Indian Audit and Accounts Department (IA-AD), which oversees financial systems at the central and state levels.
- The CAG is one of the pillars of India’s democracy, along with the Supreme Court, Election Commission, and UPSC.
Appointment and Term
- Appointment
- The President of India, under a warrant, appoints the CAG, with tenure for six years or until one reaches the age of 65, whichever earlier.
- Removal and Resignation
- It can resign or be removed with a letter addressed to the President.
- Removal should follow the procedures that apply for impeachment of a Supreme Court judge.
- It calls for a special majority in both Houses of Parliament where there is established misbehavior or incapacity.
- The CAG cannot be removed at the pleasure of the President.
- Post-Term Restrictions
- Ineligibility for further office under Indian or state governments.
- Salary and Expenses
- Same as a Supreme Court judge, and administrative costs are charged to the Consolidated Fund of India, not subjected to a vote in Parliament.
Duties and Powers
- Scrutiny
- CAG scrutinises expenditure of Consolidated Fund of India, State Funds, and other big-spending central governmental bodies.
- Net Tax Proceeds and Customs and Excise Duties
- It signs the net tax proceeds and customs and excise duties and then forwards the report to the President for laying the same before the parliament for being gone through by Public Accounts Committee.
Role in Governance
- Representative of Parliament
- It acts as a representative of Parliament to make all the expenditures legitimate and productive in nature.
- Protector
- It saves the taxpayers’ money by protecting it from frauds and adhering to laws and intended purposes.
Constitutional Provisions
- Article 148, Article 150, and Article 151 prescribe the oath of office for the CAG.
| Provision | Description |
|---|---|
| Article 148 | Deals with the appointment, oath, and conditions of service of the CAG of India. |
| Article 149 | Specifies the duties and powers of the CAG of India. |
| Article 150 | States that the accounts of the Union and States must be kept in a form prescribed by the President on the advice of the CAG. |
| Article 151 | Demands that the CAG’s reports on Union accounts are submitted to the President and laid before Parliament; state reports are submitted to the Governor and laid before the State Legislature. |
| Article 279 | Says that the CAG certifies the calculation of “net proceeds,” and its certificate is final. |
| Third Schedule | Section IV provides the oath or affirmation that is to be administered by the Judges of the Supreme Court and the CAG at the time of assuming office. |
| Sixth Schedule | Deals with the maintenance of accounts by District or Regional Councils, as per a prescribed form, in accordance with auditing procedure. Such reports shall be submitted to the Governor, who will present the same before the Council. |
Previous years UPSC Mains Questions
- “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. (2017)
- Exercise of CAC’s powers in relation to the accounts of the Union and the States is derived from Article 149 of the Indian Constitution. Discuss whether audit of the Government’s Policy implementation could amount to overstepping its own (CAG) jurisdiction.(2016)
