Understanding the role and significance of CAG

Hyderabad: This is in continuation of last article on Constitutional Bodies and focuses on the functioning and duties of Comptroller and Auditor General. COMPTROLLER AND AUDITOR GENERAL Articles 148 to 151 in Part V of the Constitution of India, deal with the office of the Comptroller and Auditor General. CAG is an independent authority under […]

Hyderabad: This is in continuation of last article on Constitutional Bodies and focuses on the functioning and duties of Comptroller and Auditor General.

COMPTROLLER AND AUDITOR GENERAL
Articles 148 to 151 in Part V of the Constitution of India, deal with the office of the Comptroller and Auditor General. CAG is an independent authority under the union Government; it is neither a part of the executive nor the legislature in the Union.

SIGNIFICANCE OF THE OFFICE OF CAG

At the core of Parliamentary form of Governance is the responsibility of the Executive to the Legislature and the financial control of the executive by the legislature. In order to enable the Legislature to discharge this function properly, it is essential that this Legislature should be aided by an agency, fully independent of the Executive, who would scrutinise the financial transaction of the Government and bring the results of such scrutiny before the Legislature. The office of CAG has been provided for in the Constitution of India for this purpose. Thus, as opined by Dr Ambedkar, the Comptroller and Auditor-General of India is the most important officer under the Constitution of India because he is to be the guardian of the public purse and it is his duty to see that not a rupee is spent out of the Consolidated Fund of India or of a State without the authority of the appropriate Legislature. In short, he shall be the impartial head of the audit and accounts system of India.

APPOINTMENT OF CAG
Provisions related to the appointment, conditions of service, salary and removal of the CAG are enshrined under Article 148 of the Indian Constitution. According to the article:

– The CAG is appointed by the President by warrant under his hand and seal.
– The salary and other conditions of service to the office of CAG are determined by the Parliament.
– The salary of CAG is specified in the second Schedule of the Constitution

INDEPENDENCE OF THE OFFICE OF CAG
In order to discharge the duty of auditing properly, it is highly essential that the office of CAG should be independent of any control of the Executive. CAG is independent in his functioning and this is ensured by the following provisions listed under Article 148 of the Constitution of India

 The CAG is eligible for post-retirement pension

 CAG is ineligible for further appointment under the Central Government or the State Governments after retirement; this condition seeks to ensure that the legislature or execute cannot induce the CAG for any favours.

 The salary of CAG is charged on to the Consolidated Fund of India and cannot be reduced to his disadvantage.

 The administrative expenses of the office of the CAG, including the salaries, allowances and pensions payable to the persons servicing the Office of CAG is charged on to the Consolidated Fund.

 The CAG can be removed from office in the like manner and on the grounds of that of the Judge of the Supreme Court. In other words, CAG can be removed from the office by the President only on the grounds of proved misbehaviour or incapacity and on the basis of a resolution approved by the Parliament with a special majority.

The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence.