COMPTROLLER AND AUDITOR GENERAL OF INDIA

What is the CAG?
The Comptroller and Auditor General (CAG) of India is an apex constitutional authority responsible for auditing government expenditure, ensuring financial accountability, and maintaining transparency.
The CAG holds a key position in the functioning of the government, as it ensures that public funds are used efficiently and according to the law.
Constitutional Basis:
The CAG's office is established under Article 148 of the Indian Constitution.
It is a constitutional body, and its independence is guaranteed under the Constitution.

By the President:
The CAG is appointed by the President of India.
Qualifications and Tenure:
The CAG should be a person with expertise in public affairs and auditing.
The term of office is six years or until the age of 65 years, whichever is earlier.
Removal:
The CAG can only be removed through a process similar to that of a Supreme Court judge, i.e., through impeachment by Parliament on grounds of proven misbehaviour or incapacity.

Audit Functions:
The CAG conducts audits of government expenditures, both at the central and state levels.
The audit ensures that funds allocated by the Parliament and state legislatures are utilized in a proper and effective manner.
Types of Audit:

Financial Audit: Ensures that the accounts of the government are in order.
Performance Audit: Examines whether government programs and schemes achieve their intended objectives.
Compliance Audit: Verifies whether the government has complied with laws, rules, and regulations.

Submission of Reports:
The CAG submits audit reports to the President of India (for central government accounts) and Governor of the respective state (for state government accounts).
These reports are then laid before Parliament and State Legislatures.
Role in Parliament:
The CAG’s reports are considered by the Public Accounts Committee (PAC) of Parliament, which examines the findings and recommends action on financial irregularities.
The CAG ensures that the government is held accountable for the proper use of public funds.

The CAG operates independently of the government to ensure impartial auditing and reporting. The provisions in the Constitution safeguard the CAG from political interference.
Its independence is crucial for transparency in governance, especially in detecting financial irregularities.

Public Accountability:
The CAG's audits help uphold public accountability and transparency in government operations.
Reports and Media Impact:
CAG reports often become a key source of media discussions and can lead to investigations, reforms, and changes in governance.
Impact on Policy:
The CAG's findings often influence policy changes. For example, the CAG's reports on issues such as the 2G Spectrum scam or the coal block allocation scam played significant roles in bringing transparency to the political system.

Increased Complexity of Governance:
As governance becomes more complex with newer welfare schemes and public-private partnerships, auditing them can be challenging.
Political Pressure:
The CAG’s audits are often under scrutiny from political parties, and there may be attempts to discredit its findings.
Lack of Adequate Resources:
The CAG may face resource constraints, including manpower and technology, which can hinder the effectiveness of audits.

Digital Auditing:
In recent years, the CAG has embraced digital auditing, using tools like data analytics to enhance the effectiveness of its audits.
Audit of Government Schemes:
More emphasis has been placed on auditing the effectiveness and outcomes of government schemes and programs.
Global Recognition:
The CAG has gained international recognition for its work in auditing governance systems, and it has contributed to the International Organization of Supreme Audit Institutions (INTOSAI).

Preliminary Examination:
Questions related to the CAG's role, powers, and independence may be asked under Indian Polity and Governance sections in General Studies.
Mains Examination:
The role of CAG can be crucial in essays or descriptive questions related to transparency, accountability, and governance.
It may also be relevant to questions on the structure and functions of constitutional bodies.
Current Affairs:
Keep an eye on reports released by the CAG, as they often become important in current affairs preparation for UPSC exams.

The Comptroller and Auditor General of India plays a pivotal role in ensuring financial discipline and accountability in the government. Through its audits, it helps maintain transparency, reduces corruption, and makes the government accountable to the people.
Understanding the functioning of the CAG is essential for any UPSC aspirant as it forms an integral part of governance and public administration.

FIRST IAS INSTITUTE.