Question

Consider the following statements about the role and significance of the CAG:

(i) The CAG is described as the guardian of the public purse, controlling the financial system at both the Centre and state levels.

(ii) Dr. B.R. Ambedkar stated that the CAG is the most important officer under the Constitution of India.

(iii) The CAG is considered one of the bulwarks of India’s democratic system, alongside the Supreme Court, Election Commission, and Union Public Service Commission.

(iv) The CAG’s administrative expenses are subject to the vote of Parliament.

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

• A. (i), (ii), and (iii) 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 (iii) only

Role and Significance of the Comptroller and Auditor General (CAG) of India

• Guardian of the Public Purse: The CAG is often referred to as the 'watchdog' of the Indian economy and the 'guardian of the public purse.' This signifies its crucial role in overseeing government expenditure and ensuring that public funds are utilized efficiently and effectively.

• Constitutional Mandate: Article 148 of the Constitution of India provides for the appointment of the CAG and outlines their independence.

• Scope of Authority: The CAG audits the accounts of both the Union and State governments, including government companies, corporations, and autonomous bodies substantially financed by the government. This ensures financial accountability across all levels of governance.

• Quote by Dr. B.R. Ambedkar: Dr. B.R. Ambedkar, the architect of the Indian Constitution, is quoted as saying that the CAG is the 'most important officer under the Constitution of India.' This highlights the profound importance attached to the office's role in maintaining financial probity and democratic accountability.

• Pillar of Democracy: Along with institutions like the Supreme Court, the Election Commission, and the Union Public Service Commission (UPSC), the CAG is recognized as a vital pillar of India's democratic framework. These institutions act as checks and balances, safeguarding democratic principles and the rule of law.

• Administrative Expenses: The administrative expenses of the CAG, including the salaries and allowances of its officers and staff, are charged on the Consolidated Fund of India. This means these expenses are not subject to the vote of Parliament, ensuring the independence of the CAG's office from political interference.

• Independence of Audit: Charging expenses on the Consolidated Fund is a key feature that reinforces the CAG's independence, allowing it to perform its audit functions without fear or favor.