Comptroller and Auditor General of India- UPSC Notes

Comptroller and Auditor General of India (CAG)

Article 148 of the Indian Constitution provides for the office of the Comptroller and Auditor General of India (CAG). It acts as the custodian of the public funds, overseeing the entire financial framework of the country at both levels- the Centre and the State.

Exercise of financial control is one of the main responsibilities of the legislature. The Parliament and state legislatures are aided by the CAG to ensure the financial accountability of the executive to the legislature of the Union and the states.

The CAG is the administrative head of the Indian Audit and Accounts Department. Its administrative power is governed by rules made by the President with his/her consultation. It ensures that the executive upholds the Constitution of India and the laws of Parliament in matters of financial administration.

The importance of the office of the CAG in the Indian democratic set-up is underscored by Dr BR Ambedkar, who aptly described it as “Probably one of the most important offices under the Constitution of India”.

Historical Background of the Office of the CAG

The office of the CAG began as soon as the British crown took direct control of India in 1858.In 1919, the office of the ‘Auditor General in India’ was statutorily recognised under the Government of India Act 1919. In 1935, the position was renamed the ‘Auditor General of India’, and he was appointed by the King of England, signifying the independence enjoyed by the office. V Narahari Rao became the first Auditor General of India post-independence.

Position and Autonomy of CAG

The Constitution has provided an important and independent position to the office of the CAG by providing adequate safeguards to ensure independence from the executive.

Appointment, Tenure and Removal of the CAG [Article 148]

• Appointment: The CAG is appointed by the President by warrant under his/her seal.
• Oath and affirmation: Before taking over the office, s/he subscribes to an oath or affirmation before the President [The oath of the CAG (same as judge of Supreme Court) is mentioned in the 3^rd schedule of the Indian Constitution.

• Term: S/he holds office for a period of 6 years or up to 65 years of age, whichever is earlier. S/he can resign from his office at any time by addressing his/her resignation letter to the President.
• Removal: The CAG can be removed from office only on the grounds of proven misbehaviour and incapacity (as in the case of a Supreme Court judge). Though appointed by the President, s/he does not hold the office at the pleasure of the President.

Terms of Office (Independence of CAG)

Since the CAG audits government’s account, it is imperative for it to remain independent from the government, to ensure accountability. Following provisions have been ensured in this regard:

1. The Constitution guarantees that the CAG’s salary and other conditions of the service (pensions, leave of absence, and age of retirement) cannot be revised to his/her disadvantage.
2. The salaries, allowances, and administrative expenses of the CAG are charged on the consolidated fund of India, which means it is not subject to the Parliament’s voting.
3. Upon his/her retirement, removal, or resignation, the CAG is prohibited from holding any office under the government of India or the state government. This provision has been made to keep the office of the CAG immune from the allurement of receiving favours from the executive, which might influence his/her decisions.

Duties and Powers of the CAG