Appointment, Term, Duties, and Powers of the Comptroller and Auditor General (CAG) of India

Appointment

The Comptroller and Auditor General (CAG) of India is appointed by the President of India under Article 148 of the Constitution. The appointment process is designed to ensure the independence and integrity of the office. The President issues a warrant under his hand and seal to formalize the appointment, underscoring the importance of the CAG's role in maintaining financial oversight in the government.

Term

The CAG serves a term of six years from the date they assume office or until they reach the age of 65, whichever comes first. The term is secured to ensure stability and independence in their functioning. The CAG can be removed from office only through a process similar to that of removing a Supreme Court judge, requiring a resolution passed by both Houses of Parliament on grounds of proven misbehavior or incapacity.

Duties and Powers

The duties and powers of the CAG are detailed in the Constitution and further elaborated in the CAG's (Duties, Powers and Conditions of Service) Act, 1971. The primary responsibilities of the CAG include auditing the accounts of the Union and state governments and ensuring accountability in financial administration.

Duties

1. Audit of Consolidated Funds:
   • Audits all expenditures from the Consolidated Fund of India, each state, and Union Territories with legislative assemblies.
2. Audit of Contingency and Public Accounts:
   • Audits all expenditures from the Contingency Fund of India and the Public Account of India, as well as the Contingency Fund and Public Account of each state.
3. Audit of Government Departments:
   • Audits trading, manufacturing, profit and loss accounts, balance sheets, and other subsidiary accounts kept by any department of the central and state governments.
4. Audit of Autonomous Bodies and Authorities:
   • Audits receipts and expenditures of bodies substantially financed from central or state revenues, including government companies and other corporations.
5. Certification of Net Proceeds:
   • Ascertains and certifies the net proceeds of any tax or duty, and the certificate is final.
6. Advisory Role:
   • Advises the President on the form in which accounts of the Centre and states should be kept.
7. Audit Reports:
   • Submits audit reports relating to the accounts of the Centre to the President and those of the states to the Governor. These reports are laid before the respective legislatures for scrutiny.

Powers

1. Scope of Audit:
   • The CAG has the authority to decide the scope and extent of audits, determining the areas and departments to be scrutinized.
2. Regulatory and Propriety Audits:
   • Conducts regulatory audits to ensure expenditures are authorized and conform to laws and propriety audits to evaluate the wisdom and economy of expenditures.
3. Efficiency and Performance Audits:
   • Carries out efficiency audits to assess whether resources are utilized optimally and performance audits to evaluate if government programs are achieving intended objectives.
4. Environmental Audits:
   • Conducts audits focusing on environmental conservation and management, addressing issues like biodiversity and pollution.
5. Supplementary Audits:
   • Takes up supplementary audits in Public Sector Undertakings (PSUs) to detect leakages even after commercial audits are conducted by other auditors.

Conclusion

The Comptroller and Auditor General of India plays a vital role in ensuring financial accountability and transparency within the government. The CAG's duties and powers are extensive, covering a wide range of financial transactions and ensuring legislative oversight of government expenditures. However, to enhance the effectiveness of the CAG in the current socio-economic context, it is essential to address its limitations, particularly in auditing PPPs, NGOs, and local bodies, and to consider real-time auditing mechanisms. This would strengthen the institution's role in promoting accountability and good governance