COMPTROLLER AND AUDITOR GENERAL OF INDIA (CAG) -
POLITY
News:
What is the CAG audit report on Assam’s NRC?
What's in the news?
● A
recent Comptroller and Auditor-General of India (CAG) report on the update exercise of the National Register of
Citizens (NRC) in Assam has flagged serious irregularities, including
“haphazard development” of software for the exercise, making it prone to data
tampering, and flagged undue profits worth crores amassed by the system
integrator (SI) by violating the Minimum Wages Act.
● The
auditor flagged concerns in a compliance report of ‘logistical arrangements for
NRC update project in Assam’ tabled in the Assam Assembly on December 24.
CAG:
● The
Constitution of India (Article 148)
provides for an independent office of the Comptroller and Auditor General of
India (CAG).
● He
Is the head of the Indian Audit and
Accounts Department and is one of the bulwarks of the democratic system of
government in India
● He
Is the guardian of the public purse
and controls the entire financial system of the country at both the levels -
the Centre and the state.
● His
duty is to uphold the Constitution of India and laws of Parliament in the field
of financial administration.
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Constitutional Provisions for Office of CAG:
Article 148: It deals with
the CAG appointment, oath and conditions of service.
Article 149: It deals with
Duties and Powers of the Comptroller and Auditor-General of India.
Article 150: It
says that the accounts of the Union and of the States shall be kept in such
form as the President may, on the advice of the CAG, prescribe.
Article 151: It says that
the reports of the Comptroller and Auditor-General of India relating to the
accounts of the Union shall be submitted to the president, who shall cause
them to be laid before each House of Parliament.
Article 279: Calculation of
“net proceeds” is ascertained and certified by the Comptroller and
Auditor-General of India, whose certificate is final.
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Appointment:
● The CAG is appointed by the President of India by a warrant under his hand and
seal.
Term:
● The
CAG holds office for a period of six
years or up to the age of 65 years, whichever is earlier.
Removal:
● He
can resign any time from his office by addressing the resignation letter to the
president.
● He
can also be removed by the president on the same grounds and in the same manner
as a judge of the Supreme Court.
○ In
other words, he can be removed by the president on the basis of a resolution
passed to that effect by both the Houses of Parliament with special majority,
either on the ground of proven misbehavior or incapacity.
Independence and Autonomy:
The
Constitution has made the following provisions to ensure his/her independence.
● He
is provided with the security of tenure and can be removed by the president
only in accordance with the procedure mentioned in the Constitution.
● Thus,
he does not hold his office till the pleasure of the president, though he is
appointed by him.
● He
is not eligible for further office,
either under the Government of India or of any state, after he ceases to hold
his office.
● His
salary and other service conditions are determined by the Parliament. His salary is equal to that of a judge of the
Supreme Court.
● Neither
his salary nor his rights in respect of leave of absence, pension or age of
retirement can be altered to his disadvantage after his appointment.
● The
administrative expenses of the office of the CAG, including all salaries,
allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India
and are not subject to the vote of Parliament.
● No
minister can represent the CAG in Parliament (both Houses) and no minister can
be called upon to take any responsibility for any actions done by him.
Duties of CAG:
● CAG
audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT
having a legislative assembly.
● CAG
audits all expenditure from the Contingency Fund of India and the Public
Account of India as well as the Contingency Fund and Public Account of each
state.
● CAG
audits all trading, manufacturing, profit and loss accounts, balance sheets and
other subsidiary accounts kept by any department of the Central Government and
the state governments.
● CAG
audits the receipts and expenditure of all bodies and authorities substantially
financed from the Central or State revenues; government companies; other
corporations and bodies, when so required by related laws.
● He
ascertains and certifies the net proceeds of any tax or duty and his
certificate is final on the matter.
Reports:
● He
submits his audit reports relating to the accounts of the Centre and State to
the President and Governor, who
shall, in turn, place them before both the houses of Parliament and the state
legislature respectively.
● He
submits three audit reports to the President.
○ Audit
report on appropriation accounts
○ Audit
report on finance accounts and
○ Audit
report on public undertakings.