First celebration of "Audit Diwas"

An update on the CAG of India and the "Audit Diwas" celebrations

First celebration of "Audit Diwas"

---

Read more on - Polity | Economy | Schemes | S&T | Environment

---

• The story: The Comptroller and Auditor General (CAG) of India is the final authority that checks the sanctity of government accounts. The PM unveiled the statue of Sardar Vallabhbhai Patel at the office of the Comptroller and Auditor General (CAG) of India to mark the First Audit Diwas (16th November, 2021).
• The day: This day is celebrated to mark the historic origins of the institution of the CAG. It aims to highlight the rich contributions of the CAG to boost transparency and good governance. Girish Chandra Murmu assumed office as the Comptroller and Auditor General of India on 8th August 2020. It was the CAG whose reports on 2G tele spectrum allocation and coal blocks allocation that caused an uproar in Indian politics in the 2010s, leading to a regime change finally in 2014. The CAG then was Vinod Rai, who was rewarded with the post of chief of Banks Board Bureau (BBB) later.
• How different from Britain: The Constitution of India visualises the CAG to be Comptroller as well as Auditor General. However, in practice, the CAG is fulfilling the role of an Auditor-General only and not that of a Comptroller. The CAG has no control over the issue of money from the consolidated fund and many departments are authorised to draw money by issuing cheques without specific authority from the CAG, who is concerned only at the audit stage when the expenditure has already taken place. The CAG of India differs from the CAG of Britain who has powers of both Comptroller as well as Auditor General. In Britain, the executive can draw money from the public exchequer only with the approval of the CAG.
• Details on CAG:

1. A constitutional body - Article 148 provides for an independent office of the CAG, as the supreme audit institution of India.
2. Provisions - Articles 149-151 (Duties & Powers, Form of Accounts of the Union and the States and Audit Reports), Article 279 (calculation of net proceeds, etc.) and Third Schedule (Oath or Affirmation) and Sixth Schedule (Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram).
3. CAG - Head of the Indian Audit and Accounts Department - created in 1753. Guardian of the public purse and controls the entire financial system of the country at both the levels–the Centre and the state. One of the bulwarks of the democratic system of government in India, the others being the Supreme Court, the Election Commission and the Union Public Service Commission.
4. The accountability of the executive (i.e. Council of Ministers) to the Parliament in the sphere of financial administration is secured through audit reports of the CAG.
5. Appointed by the President of India by a warrant under his hand and seal. Tenure is a period of six years or upto the age of 65 years, whichever is earlier.
6. CAG can be removed by the President on the same grounds and in the same manner as a judge of the Supreme Court. He does not hold his office till the pleasure of the President. So he can be removed by the President on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehaviour or incapacity.

• Separation of powers and Checks and Balances: The CAG is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office. The salary and other service conditions are determined by the Parliament. The administrative expenses of the office of the CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India (thus are not subject to the vote of Parliament).

1. No minister can represent the CAG in Parliament.
2. CAG audits the accounts related to all expenditure from the Consolidated Fund of India, consolidated fund of each state and consolidated fund of each union territory having a Legislative Assembly. CAG also audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the contingency fund of each state and the public account of each state. It audits the profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and state governments.
3. The CAG audits the receipts and expenditure of the following too - Bodies and authorities substantially financed from the Central or state revenues, Government companies, and Other corporations and bodies, when so required by related laws. Audits the accounts of any other authority when requested by the President or Governor. For example, the audit of local bodies.
4. Acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.

• EXAM QUESTIONS: (1) Explain the sudden drop in the high profile of the CAG of India, whose reports used to be awaited with great anticipation in earlier years. What changed? (2) What are the implications of any adverse notings in the CAG reports? Explain. (3) How is the CAG different from the CGA, in India? Explain.

Read more on - Polity | Economy | Schemes | S&T | Environment

#CAG #Comptroller #AuditorGeneral #Murmu

Join UPSC Self Prep course | Online Course (PT Gurukul)  | Covid Special Course | Join PT courses

* Content sourced from free internet sources (publications, PIB site, international sites, etc.). Take your own subscriptions. Copyrights acknowledged.