Question

Consider the following statements about the CAG’s independence and functioning:

(i) The CAG does not hold office at the pleasure of the President, though appointed by him/her.

(ii) The administrative expenses of the CAG’s office are charged upon the Consolidated Fund of India.

(iii) The CAG can demand details of secret service expenditure from executive agencies.

(iv) The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee of Parliament.

Which of these statement(s) is/are correct?

• A. (i), (ii), and (iv) only
• B. (ii), (iii), and (iv) only
• C. (i), (iii), and (iv) only
• D. (i), (ii), and (iii) only

Answer 1

Answer:

A. (i), (ii), and (iv) only

Constitutional Provisions for the Comptroller and Auditor General (CAG) of India

• Article 148 provides for the appointment of the CAG by the President of India.

• Security of Tenure: The CAG holds office for a period of six years or until the age of 65, whichever is earlier. This tenure is secured, meaning they cannot be removed arbitrarily by the executive.

• Removal Process: The CAG can only be removed from office in a manner similar to the removal of a Supreme Court judge, i.e., through an address by both Houses of Parliament on grounds of proved misbehaviour or incapacity (Article 148(1)). This ensures independence from the executive.

• Independence from Executive: Statement (i) is correct because, despite appointment by the President, the CAG's tenure and removal process are independent of the President's pleasure.

Financial Autonomy of the CAG's Office

• Charged Expenditure: As per Article 112(3)(d) and Article 279(1), the administrative expenses of the CAG's office, including salaries and pensions, are charged upon the Consolidated Fund of India. This means these expenses are not subject to the vote of Parliament, further safeguarding the CAG's financial independence. Statement (ii) is correct.

Role of the CAG in Auditing

• Audit Mandate: The CAG audits all receipts and expenditures of the Union and State governments, including government companies, corporations, and bodies substantially financed by the government.

• Secret Service Expenditure: While the CAG can scrutinize the *amount* of secret service expenditure, the *details* of such expenditure are generally not disclosed to the CAG or Parliament, considering national security implications. Thus, statement (iii) is incorrect as the CAG cannot demand details of secret service expenditure from executive agencies.

• Relationship with Public Accounts Committee (PAC): The CAG plays a crucial role in assisting the Public Accounts Committee (PAC) of Parliament. The CAG audits government accounts and submits reports to the President/Governor, who then causes them to be laid before Parliament/State Legislature. The PAC then examines these reports.

• CAG as Guide to PAC: The CAG acts as a guide, friend, and philosopher to the PAC by scrutinizing government spending, identifying irregularities, and presenting findings in an accessible manner, enabling the PAC to effectively hold the executive accountable. Statement (iv) is correct.

Key Takeaways for Exams

• The CAG's independence is a cornerstone of financial accountability in India.

• Understand the distinction between 'charged' and 'voted' expenditure.

• Note the limitations regarding the audit of 'secret service expenditure'.

• The CAG's reports are vital for parliamentary oversight through the PAC.