COMPTROLLER AND AUDIT GENERAL OF INDIA: POLITY

COMPTROLLER AND AUDIT GENERAL OF INDIA: POLITY

NEWS:  Amid ‘Sheesh Mahal’ row, a look at what CAG can do — and can’t

 

WHAT’S IN THE NEWS?

The CAG report highlighting renovation costs of the former Delhi CM’s office and residence has brought attention to its critical role in ensuring financial accountability. The CAG, India’s supreme audit authority, functions under Articles 148-151 of the Constitution, ensuring transparency in governance.

1. Constitutional and Legal Framework

  • Articles 148-151: Provide for the CAG's appointment, duties, and reporting.
  • The CAG Act, 1971: Details the service conditions, powers, and responsibilities of the CAG.

2. Historical Evolution of the CAG

  • British India Roots: The Government of India Act, 1858, led to the appointment of Sir Edward Drummond as the first Auditor General in 1860.
  • Montford Reforms (1919): Made the Auditor General independent of the government.
  • Government of India Act (1935): Strengthened the position of the Auditor General, detailing service conditions in 1936.

3. Key Responsibilities of the CAG

  • Audit Scope:
  • Consolidated Fund of India, states, and union territories.
  • Contingency Fund and Public Account audits.
  • Debt, sinking funds, and deposit transactions with Presidential approval.
  • Discretionary Audits: Performed upon Presidential or Governor requests.

4. Reporting to Parliament

  • Types of Reports:
  • Appropriation Accounts: Ensures allocated funds were spent as intended.
  • Finance Accounts: Documents annual receipts and expenditures.
  • Public Undertakings: Reviews financial operations of PSUs.
  • Parliamentary Oversight: Reports are examined by the Public Accounts Committee (PAC).

5. Significance and Impact of CAG Reports

  • Financial Accountability: Uncovering financial irregularities and lapses.
  • Policy Influence: E.g., 2G spectrum allocation report (2010) led to key reforms.
  • Public Awareness: Highlights governance issues for public scrutiny.

6. Challenges and Recommendations

  • Challenges:
  • Delayed audits due to resource constraints.
  • Resistance from audited entities.
  • Recommendations:
  • Enhanced operational independence.
  • Use of modern technologies for audits.

Source: https://indianexpress.com/article/political-pulse/sheesh-mahal-aap-row-cag-9769353/