“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.
“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.
Subject: Indian Polity
The Comptroller and Auditor General (CAG) serves as India's supreme audit institution, embodying constitutional authority under Article 148 to ensure financial accountability and transparency in governance. The institution's significance is reflected through its robust appointment process and comprehensive audit powers, making it a cornerstone of democratic accountability.
Method and Terms of Appointment
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Constitutional Safeguards: The CAG enjoys constitutional protection similar to Supreme Court judges, ensuring independence and impartiality in functioning.
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Presidential Appointment: The President appoints the CAG through warrant under hand and seal, maintaining the highest level of constitutional legitimacy.
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Security of Tenure: Can only be removed through impeachment process similar to Supreme Court judges, protecting against arbitrary removal.
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Service Conditions: Parliament determines the CAG's salary and service conditions through the CAG's (Duties, Powers and Conditions of Service) Act, 1971.
Range of Powers and Functions
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Financial Oversight:
- Audits all receipts and expenditures of Central and State governments.
- Recent audit revealed misallocation of Rs 57.45 crore across six states, demonstrating vigilant monitoring.
- Uncovered irregularities in PMJAY scheme involving Rs 6.9 crore paid for deceased patients.
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Infrastructure Projects:
- Scrutinizes major infrastructure projects for cost efficiency.
- Highlighted cost escalation in Dwarka Expressway from Rs 18.20 crore to Rs 250.77 crore per kilometer.
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Statutory Framework:
- Powers defined under Sections 14, 15, 19(3), and 20(1) of DPC Act.
- Authority to audit entities with 51% or more government funding.
- Requires government sanction for auditing PPP partners or private contractors.
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Parliamentary Interface:
- Reports submitted to Parliament/State legislatures for debate.
- Public Accounts Committee (PAC) examines CAG reports.
- Recommendations form basis for corrective actions.
The CAG's role as India's supreme audit institution is reinforced through its constitutionally protected appointment process and extensive audit powers. While facing certain limitations like post-facto audit nature and restrictions on private entity audits, the institution continues to serve as a watchdog of public finances, exemplified by recent exposures of financial irregularities in schemes like PMJAY and infrastructure projects.
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