The appointment of senior IAS officer K Sanjay Murthy as the next Comptroller and Auditor General (CAG) of India marks a significant development in India's governance and accountability framework. The CAG plays a critical role in ensuring transparency and efficiency in government expenditure.
About the Comptroller and Auditor General (CAG)
The CAG is an independent authority established under the Indian Constitution, tasked with auditing the accounts of both the Central and State governments and ensuring proper utilization of public funds.
Key Constitutional Provisions
Article 148
Appointment: The CAG is appointed by the President of India by warrant under his hand and seal.
Salary and Service Conditions: Determined by Parliament and charged to the Consolidated Fund of India (CFI), ensuring financial independence.
Reappointment: The CAG is not eligible for reappointment in any Central or State government capacity.
Article 149
Empowers Parliament to define the duties and powers of the CAG through legislation.
Article 151
Mandates that CAG reports be submitted to the President, who presents them before both Houses of Parliament.
Key Statutory Provisions: CAG Act, 1971
Tenure: The CAG holds office for 6 years or until reaching the age of 65 years, whichever is earlier.
Removal: Removal is by the President, following the same procedure and grounds as that for a Supreme Court judge (proven misbehavior or incapacity).
Functions and Responsibilities of CAG
Auditing Role
Audits all expenditures from the Consolidated Fund of India, State, and Union Territories.
Audits government companies and other bodies substantially financed by public funds.
Ensuring Accountability
Promotes fiscal discipline by examining whether public funds are used efficiently and for their intended purposes.
Financial Oversight
Provides valuable insights into financial irregularities and misuse of public resources.
Plays a pivotal role in preventing corruption.
Relevance to Governance
Transparency: The CAG enhances accountability in public financial management.
Public Trust: By exposing irregularities, it bolsters confidence in governance.
Parliamentary Oversight: Its reports guide parliamentary debates and policymaking.
Challenges and Way Forward
Challenges
Limited power to enforce recommendations.
Increasing complexity of modern-day government operations.
Potential for political pressures.
Recommendations
Strengthening Autonomy: Enhance operational independence to ensure unbiased audits.
Technological Integration: Adopt advanced auditing tools like AI and blockchain for efficient evaluations.
Capacity Building: Upskill CAG personnel to address emerging challenges in auditing.
Practice Question
Consider the following statements regarding the Comptroller and Auditor General (CAG):
The CAG is appointed by the Prime Minister of India.
The CAG's salary and allowances are charged on the Consolidated Fund of India.
The removal of the CAG follows the same procedure as that of a Supreme Court judge.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
Answer: (b) 2 and 3 only
Explanation:
Statement 1 is incorrect; the CAG is appointed by the President of India.
Statement 2 is correct; the salary is charged on the Consolidated Fund of India, ensuring financial independence.
Statement 3 is correct; the removal procedure mirrors that of a Supreme Court judge.
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