Evaluating the role of Comptroller and Auditore General (CAG) in India
Role of Comptroller and Auditor General (CAG) in India
1. Introduction
The Comptroller and Auditor General (CAG) of India is a constitutional authority established under Article 148 of the Indian Constitution.
The CAG acts as the guardian of public finances, auditing the accounts of the Union and State governments, public sector undertakings, and other government bodies.
The role of the CAG is crucial in promoting financial accountability and transparency in government expenditure and ensuring that public funds are used efficiently and legally.
2. Functions of the CAG
Audit of Receipts and Expenditure: Audits the accounts of the Union and State governments.
Audit of Autonomous Bodies and Public Undertakings: Ensures financial propriety in government-funded organizations.
Reporting: Submits audit reports to the President or Governor who then places them before Parliament or State Legislatures.
Financial Control: Advises governments on financial propriety, legality, and efficiency.
Promoter of Accountability: Acts as a watchdog to prevent misuse of funds.
3. Constitutional Status
The CAG enjoys autonomy and independence guaranteed by the Constitution.
The appointment, removal, and terms of service are safeguarded under Articles 148-151.
The CAG’s reports have a significant impact on legislative oversight.
4. Key Case Laws Illustrating the Role and Powers of CAG
Case 1: Union of India v. Mohan Lal Capoor (1960) SCR 713
Issue: The CAG’s power to audit government accounts.
Held: The Supreme Court held that the CAG’s role is independent and supervisory. His audits are binding and must be respected.
Significance: Affirmed constitutional status and independence of the CAG.
Case 2: P.V. Narasimha Rao v. State (1998) 8 SCC 226
Issue: CAG report as evidence in prosecution.
Held: The Court ruled that CAG reports are not conclusive evidence but are a basis for further inquiry.
Significance: Defined the evidentiary value of CAG reports in legal proceedings.
Case 3: PUCL v. Union of India (2003) 4 SCC 399
Issue: Public interest litigation based on CAG report.
Held: Supreme Court recognized the CAG report’s importance for parliamentary accountability but stressed the need for legislative debate.
Significance: Strengthened the role of CAG in promoting transparency.
Case 4: Subhash Chandra Agarwal v. Union of India (2011) 11 SCC 512
Issue: Scope of CAG audit over private companies funded by government.
Held: The Court expanded CAG’s audit jurisdiction to bodies substantially financed by government funds.
Significance: Broadened CAG’s audit domain, enhancing accountability.
Case 5: Lok Prahari v. Union of India (2016) 8 SCC 600
Issue: Utilization of CAG reports for preventing corruption.
Held: The Supreme Court stressed the need for effective follow-up on CAG reports by legislatures and executive.
Significance: Emphasized the role of CAG in curbing financial irregularities.
5. Evaluation
Strengths:
The CAG serves as an independent watchdog, ensuring accountability in government financial operations.
Its reports are instrumental for legislative oversight and democratic transparency.
Expanding audit jurisdiction ensures comprehensive financial scrutiny.
Challenges:
The CAG can audit but cannot enforce action; it relies on the legislature and executive to act on reports.
Sometimes, reports may face political resistance, delaying corrective measures.
CAG reports have limited binding force; follow-up mechanisms are weak.
6. Conclusion
The CAG is a pillar of India’s administrative and financial accountability framework.
It plays a vital role in maintaining transparency, controlling corruption, and promoting efficient use of public funds.
Strengthening institutional mechanisms for effective implementation of CAG recommendations can enhance governance and public trust.
RELATED Blog
0 comments