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Question – Explain the importance of Comptroller & Auditor General in the Indian Democracy. Briefly discuss its role and functions.
- January 16, 2023
- Posted by: Pallavi Singh
- Category: Blog
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Answer –
Thank you for reading this post, don't forget to subscribe!The Constitution of India 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. He is the guardian of the public purse and controls the financial system of the country both at the central level and state level. Articles 148 to 151 in Part V of the Constitution of India, deal with the office of the Comptroller and Auditor General.
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.
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. .
Functions of CAG –
1. He audits all transactions of the Central and State Governments related to debts, deposits, funds, etc.
2. He audits the accounts of any other authority when requested by the President or Governor. For example, local bodies.
3. He advises the President with regard to the prescription of the form as to how the records of Centre and State shall be kept.
4. He submits his report relating to the Centre to the President, who then places it before both houses of Parliament.
5. He submits his report relating to State to the Governor, who then places them before State Legislature.
6. He ascertains and certifies the net proceeds of any tax or duty, and his certificate is final on the matter.
7. He submits three audit reports to the President:
a. Audit report on appropriation accounts.
b. Audit report on financial accounts.
c. Audit report on public undertakings
Roles of CAG –
1. The CAG is an agent of the Parliament and conducts audits of expenditure on behalf of the Parliament. Therefore he is responsible only to the Parliament.
2. The CAG has to ascertain whether the money spent was authorised for the purpose for which they were spent.
3. He focuses on whether the expenditure made is in the public interest or not.
4. The role of CAG in the auditing of public corporations is limited. Some corporations are audited directly by the CAG. For example, ONGC, Air India, and others. Some corporations are audited by private professional auditors who are appointed by the Central Government in consultation with CAG. If necessary, there may be a supplementary audit by CAG.
5. The role of the CAG in the auditing of Government Companies is also limited. They are audited by private auditors who are appointed by the Central Government on the advice of the CAG.
Way Forward:
Since CAG holds huge importance in our parliamentary democracy, it becomes essentual that the criteria for selection of the CAG should include possession of the requisite professional knowledge and background, the ability of an exceptional order and impeccable integrity.
This is essential for preserving the integrity and credibility of the institution of public audit.