What is the role of the Comptroller and Auditor General (CAG) in Indian governance?

116 Oct 2024

Nikhil Kumar2 followers

The Comptroller and Auditor General (CAG) of India plays a pivotal role in ensuring transparency and accountability in the financial management of the government. The CAG is responsible for auditing the accounts of the central and state governments, and its reports are crucial for maintaining fiscal discipline.

1. Constitutional Status and Functions of the CAG

The CAG is a constitutional authority established under Article 148 of the Indian Constitution, tasked with auditing government accounts and ensuring financial accountability.

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Article 148: Establishes the CAG and outlines its powers and responsibilities.
Appointment and Tenure: The CAG is appointed by the President of India and holds office for a term of six years or until the age of 65, whichever is earlier.
Audit of Government Accounts: The CAG audits the accounts of the central and state governments, public sector undertakings (PSUs), and autonomous bodies.
Reports to Parliament and State Legislatures: The CAG submits its audit reports to the President or the Governor, who then presents them to Parliament or state legislatures.

2. Role of the CAG in Promoting Accountability

The CAG is instrumental in promoting accountability by ensuring that public funds are used efficiently, economically, and effectively.

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Ensuring Financial Discipline: The CAG’s audits highlight irregularities in the use of public funds, promoting better fiscal management.
Performance Audits: The CAG conducts performance audits to assess whether government programs and schemes are achieving their intended objectives.
Compliance Audits: These audits ensure that government transactions comply with financial rules and regulations.
Strengthening Democratic Oversight: The CAG’s reports are crucial for Parliament and state legislatures in holding the government accountable for its financial decisions.

3. Challenges and Limitations of the CAG

While the CAG has extensive powers, it also faces challenges that affect its effectiveness in ensuring financial accountability.

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Limited Enforcement Powers: The CAG can only audit and report irregularities; it does not have the authority to enforce corrective measures.
Over-reliance on Government Response: The effectiveness of the CAG’s reports depends on the actions taken by Parliament or state legislatures based on its findings.
Delays in Reporting: Delays in the submission and tabling of audit reports can reduce the impact of the CAG’s findings.
Need for Greater Independence: There have been calls for greater autonomy for the CAG to enhance its ability to conduct independent audits without governmental influence.

Key Questions for Revision

What is the role of the CAG in India?
The CAG audits the accounts of the central and state governments, ensuring transparency and accountability in public financial management.
What are the key constitutional provisions related to the CAG?
The CAG is established under Article 148 of the Constitution, and its functions are primarily focused on auditing government accounts.
How does the CAG promote financial accountability?
The CAG highlights irregularities in the use of public funds, conducts performance audits, and submits reports to Parliament and state legislatures.
What are some challenges faced by the CAG?
The CAG faces challenges such as limited enforcement powers, delays in reporting, and the need for greater independence to conduct audits effectively.

In conclusion, the Comptroller and Auditor General (CAG) of India is a critical institution for ensuring transparency and accountability in government financial operations. However, addressing the challenges it faces would further strengthen its role in promoting good governance.