Appointment of Comptroller and Auditor General (CAG)

Prelims Only | Polity | Mains Paper 2: Statutory, Regulatory & Various Quasi-Judicial Bodies
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Comptroller and Auditor General

Why in the News?

The Supreme Court has decided to examine a plea challenging the current process of appointing the Comptroller and Auditor General of India (CAG).

About Office of the Comptroller and Auditor General (CAG):

Details
Role and Importance
  • Established under Article 148 of the Indian Constitution.
  • Ensures efficient and lawful use of public funds.
  • Audits financial accounts of Consolidated Fund of India, state funds, and public sector undertakings.
  • Acts as a watchdog over government financial expenditure.
  • Plays a critical role in maintaining financial accountability in governance.
Appointment and Term
  • Appointed by the President of India under a warrant.
  • Serves a 6-year term or until the age of 65, whichever is earlier.
  • Must take an oath to uphold the Constitution and perform duties impartially.
  • Removal can only occur for misbehaviour or incapacity, through a special majority in both Houses of Parliament.
Independence of the CAG
  • Independence from the government: Ineligible for any government office after leaving office.
  • Salary and Expenses: Equal to a Supreme Court judge, with expenses charged to the Consolidated Fund of India.
  • No Ministerial Representation: No minister can represent the CAG or assume responsibility for their actions.

 

Issues with the Appointment of the CAG

The current process for appointing the CAG is seen as problematic due to the centralized control by the Union government.

  • The CAG is appointed by the President on the advice of the government, raising concerns about potential executive influence over a key independent body.
  • Critics argue that this process compromises the CAG’s independence and calls for a neutral selection committee involving the Prime Minister, Leader of the Opposition, and Chief Justice of India.
  • This would ensure that the CAG is appointed transparently and impartially, free from political interference.
  • Historically, the lack of clear guidelines in Article 148 regarding the CAG’s appointment has allowed executive interference, much like the early years of judicial appointments.

Supreme Court interventions have already reformed appointment processes for bodies like the Election Commission and Central Vigilance Commission, and similar reforms for the CAG are necessary to protect its autonomy.

[UPSC 2012] In India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)?
1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.
2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.
3. CAG reports are available to the Parliamentary Committees.
4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law. Select the correct answer using the code given below:
(a) 1, 3 and 4 only (b) 2 only (c) 2 and 3 only (d) 1, 2, 3 and 4

 

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