Q. “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. (150 words, 10 Marks)
Why the Question?
UPSC PYQ – CSE Mains – 2018
Keywords of the Question
- Comptroller and Auditor General (CAG)
- Method and terms of his appointment
- Range of powers
Directive Word
Explain – Clarify a topic by giving a detailed account as to how and why it occurs, or what is meant by the use of this term in a particular context. Your writing should have clarity so that complex procedures or sequences of events can be understood; defining key terms where appropriate, and be substantiated with relevant research.
How to approach this Question?
Introduction
- Briefly introduce the role and significance of the Comptroller and Auditor General (CAG) in India.
- Mention the constitutional provisions related to the CAG.
Body
- Appointment Method and Terms:
- Appointment by the President of India.
- Tenure and conditions of service.
- Safeguards ensuring independence (e.g., security of tenure, salary, and removal process).
- Range of Powers:
- Audit of accounts of the Union and State governments.
- Certification of net proceeds of taxes.
- Submission of audit reports to the President and Governors.
- Advisory role in the form of accounts.
Conclusion
- Summarize the importance of the CAG’s role in ensuring transparency and accountability in financial administration.
- Highlight how the method of appointment and range of powers reflect the vital role of the CAG.
Note: Please note that the following ‘answers’ are not ‘model answers’ nor are they synopses in the strictest sense. Instead, they are content designed to meet the demands of the question while providing comprehensive coverage of the topic.
Answer Key
Introduction
The Comptroller and Auditor General (CAG) of India is a constitutional authority responsible for auditing the accounts of the Union and State governments and public sector organizations. The CAG plays a crucial role in ensuring transparency and accountability in the financial administration of the country, as outlined in Articles 148 to 151 of the Indian Constitution.
Body
Appointment Method and Terms
- Appointment by the President:
- The CAG is appointed by the President of India, as per Article 148 of the Constitution, ensuring a high level of authority and independence.
- Tenure and Conditions of Service:
- The CAG holds office for a term of six years or until the age of 65, whichever is earlier, as specified in Article 148(3).
- The conditions of service and tenure are determined by the Parliament, ensuring stability and independence.
- Safeguards Ensuring Independence:
- The CAG can only be removed from office in a manner similar to that of a Supreme Court judge, i.e., by an order of the President on grounds of proven misbehavior or incapacity after an inquiry by the Parliament, as per Article 148(1).
- The salary and other conditions of service cannot be varied to the disadvantage of the CAG after appointment, as stated in Article 148(4).
Range of Powers
- Audit of Accounts: The CAG audits the accounts of the Union and State governments, including those of autonomous bodies and authorities substantially financed by the government, as per Article 149.
- Certification of Net Proceeds: The CAG certifies the net proceeds of any tax or duty, ensuring accurate financial reporting, as mentioned in Article 151.
- Submission of Audit Reports: The CAG submits audit reports to the President and Governors, who then place them before the Parliament and State Legislatures, respectively, as per Article 151.
- Advisory Role: The CAG advises the government on financial matters and maintains the accounts of the government, as outlined in Article 150.
Conclusion
The method of appointment and the range of powers vested in the CAG reflect the vital role this institution plays in maintaining financial discipline and accountability in India. By ensuring independence and providing comprehensive audit powers, the CAG upholds the principles of transparency and good governance, as enshrined in the Indian Constitution.