Q5. “The Comptroller and Auditor General (CAG) has a very vital role to play.” Explain how this is reflected in the method and terms of his appointment as well as the range of powers he can exercise.

Model Answer:

Introduction

The Comptroller and Auditor General (CAG) of India plays a pivotal role in ensuring accountability in public finances. By auditing the accounts of the government, the CAG provides crucial oversight that helps in safeguarding public funds. The significance of this office is reflected in the constitutional provisions related to the appointment, tenure, and wide range of powers exercised by the CAG.

Body

Method and Terms of Appointment:

  1. Constitutional Appointment: Under Article 148 of the Indian Constitution, the CAG is appointed by the President of India, signifying the high stature and independence of the office.
  2. Tenure and Independence: The CAG serves for a term of six years or until the age of 65, whichever is earlier. The CAG can only be removed through a complex procedure akin to the removal of a judge of the Supreme Court, ensuring independence from political pressures.
  3. Non-eligibility for Post-Retirement Jobs: The CAG is not eligible for further government office, which helps maintain impartiality and reduces conflict of interest.

Powers and Functions:

  1. Auditing Role: The CAG audits the accounts of the Union and State governments, public sector undertakings, and other bodies funded by the government, ensuring proper use of public funds.
  2. Reporting to Parliament and State Legislatures: CAG’s reports are submitted directly to Parliament and State Legislatures, which strengthens accountability as these reports form the basis for the Public Accounts Committees’ examination.
  3. Performance Audits: Apart from financial audits, the CAG conducts performance audits to assess the efficiency and effectiveness of government programs, such as the audit of schemes like MNREGA and the mid-day meal program.
  4. Special Audits: The CAG can be requested to conduct special audits when irregularities are suspected, such as the audit of telecom licenses and coal allocations.

Conclusion

‍The CAG’s role in ensuring financial accountability and transparency is fundamental to good governance. The method of appointment, secure tenure, and wide-ranging powers reflect the importance of the CAG in maintaining the integrity of the country’s financial management system.

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