0 Comments

Introduction

The Comptroller and Auditor General (CAG) is an independent constitutional authority under Article 148, heading the Indian Audit and Accounts Department. As the chief guardian of the public purse, the CAG ensures financial accountability and transparency in government operations.

Duties and Role of the CAG

  1. Audit of Government Funds: Audits the Consolidated Fund, Contingency Fund, and Public Account of India to ensure proper use of public money.
  2. Audit of State and UT Funds: Examines the Consolidated Fund, Contingency Fund, and Public Account of states and union territories.
  3. Audit of Subsidiary Accounts: Reviews accounts of government-run trading and manufacturing units at both Centre and State levels.
  4. Tax Revenue Certification: Certifies net proceeds of taxes and duties, such as GST audits, with conclusive authority.
  5. Oversight on Financial Administration: Submits audit reports to Parliament, ensuring executive accountability.
  6. Transparency in Fund Usage: Verifies funds are used for intended purposes, e.g., auditing National Rural Employment Guarantee Act funds.
  7. Proprietary Audit: Evaluates government spending for economy and efficiency, e.g., reviewing excessive defense expenditure or subsidies.
  8. Exposing Corruption: Uncovers financial misconduct, as seen in the 2G spectrum scam report, triggering major investigations.

Challenges Associated with the Office of the CAG

  1. No Appointment Criteria: The appointment process lacks clear guidelines and is politically controlled, unlike the UK’s independent selection.
  2. Executive Control: Sole executive authority over CAG appointments undermines impartiality, unlike bipartisan processes in other countries.
  3. Short Tenure: The 6-year term or 65-year age limit restricts long-term continuity, compared to 10-15 years in the US and UK.
  4. No Statutory Status for Audits: The Indian Audit and Accounts Department lacks legal recognition, unlike the UK’s National Audit Office, reducing effectiveness.
  5. Lack of Independence: Reports require parliamentary presentation, delaying transparency, e.g., delayed reports on government schemes.
  6. No Enforcement Authority: CAG’s recommendations lack enforcement power, leading to inaction on wasteful expenditure.
  7. Complex Audit Tasks: Auditing modern projects, like IT systems, is challenging due to evolving corruption and complexity.
  8. Criticism of Findings: Reports, such as the 2G spectrum audit, face criticism for exaggerated loss figures, impacting credibility.

Ways Ahead

  1. Bipartisan Selection: Establish a bipartisan committee for CAG appointments to ensure impartiality.
  2. Longer Tenure: Extend the CAG’s term to 10-15 years for continuity and stability.
  3. Statutory Status: Grant legal status to the Indian Audit Department for enhanced credibility.
  4. Enforcement Powers: Empower the CAG to enforce audit recommendations.
  5. Tech-Driven Audits: Utilize advanced tools for auditing complex government projects.

Conclusion

As stated, “Strengthening the CAG’s independence and capacity is essential for a resilient democracy and responsible governance.” Enhancing the CAG’s role is critical for effective financial oversight and public trust.

Legacy Editor Changed status to publish August 28, 2025