Comptroller and Auditor General of India - Overview, Duties, and Challenges

Why in news?

• The newly formed Delhi Cabinet decided to implement the Ayushman Bharat Yojana, and table 14 pending CAG reports in the Delhi Assembly as its first decision.

About CAG

• The Comptroller and Auditor General of India (CAG) plays a pivotal role in ensuring transparency and accountability in the financial dealings of the Indian government.
• Established under Article 148 of the Indian Constitution, the CAG audits the Union, State, and Union Territories' accounts, ensuring the proper utilization of public funds.

Key Functions of the CAG

• Audit of Government Accounts: The CAG is responsible for auditing the accounts of the Union, States, and Union Territories related to expenditures from their respective Consolidated Funds.
• Expenditure Audits: This includes audits on the Contingency Fund of India, Public Accounts, and profit and loss accounts of government-owned entities.
• Advisory Role: The CAG advises the President on the form of government accounts, ensuring consistency across different jurisdictions.
• Audit Reports: The CAG submits audit reports to the President for Union accounts and to Governors for State accounts, which are later laid before Parliament or the State Legislature for scrutiny.
• Certification: The CAG certifies the net proceeds from taxes and duties, and its certification is considered final.

Role of the CAG in Public Accountability

• The CAG’s reports are reviewed by the Public Accounts Committee (PAC) in Parliament, ensuring transparency and the proper allocation of public funds.
• Through this collaboration, the CAG plays a significant role in identifying financial mismanagement and prompting corrective actions.

Appointment and Removal of the CAG

• Appointment: The CAG is appointed by the President of India for a term of 6 years or until the age of 65, whichever comes first.
• Removal: The CAG can only be removed by the President, following a procedure similar to that for removing a Supreme Court judge.

Constitutional and Legal Provisions Governing the CAG

• Article 148: Establishes the office of the CAG.
• Article 149: Defines the duties and powers of the CAG, particularly related to auditing Union and State accounts.
• Article 150: Specifies the uniform form of government accounts across the Union and States.
• Article 151: Ensures the CAG’s audit reports are submitted to the President and presented in Parliament.
• Article 279: Involves the CAG in certifying the net proceeds of taxes and duties.

Challenges Faced by the CAG

• Delays in Information Access: Government departments often delay providing crucial data, hindering the timely release of audit reports.
• Limited Enforcement Power: While the CAG can audit, it does not have direct authority to enforce its findings or compel departments to act on recommendations.
• Ambiguity in Audit Scope: There is a lack of clarity regarding the scope of audits, especially in the case of Public-Private Partnerships (PPPs) and other private entities.
• Dependence on Government Cooperation: The CAG’s effectiveness is contingent on the cooperation of various government departments.

Suggested Reforms for Strengthening the CAG

• Broader Audit Scope: Expand audits to include PPPs, Panchayati Raj Institutions, and government-funded societies.
• Independent Appointment Process: Establish a transparent and independent appointment process, potentially through a collegium-based mechanism.
• Enforcement Power: Grant the CAG the authority to enforce audits and penalize delays in submission.
• Timely Audits: Introduce strict timelines for departments to provide necessary information, making CAG reports more actionable.