Question

Consider the following statements regarding the CAG’s constitutional role:

Statement I: The CAG is described as a bulwark of India’s democratic system.

Statement II: Dr. B.R. Ambedkar called the CAG the most important officer under the Constitution.

Statement III: The CAG’s role is limited to auditing central government accounts only.

Which of the following is correct?

• A. Only I and III are correct.
• B. Only II and III are correct.
• C. Only I and II are correct.
• D. I, II, and III are correct.

Answer 1

Answer:

C. Only I and II are correct.

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

• Statement I: The CAG is described as a bulwark of India’s democratic system.
  This statement is correct. The CAG functions as a watchdog of the public finances, ensuring accountability and transparency in government spending. This vital role protects democratic principles by preventing financial irregularities and corruption.
• Statement II: Dr. B.R. Ambedkar called the CAG the most important officer under the Constitution.
  This statement is correct. Dr. B.R. Ambedkar, the architect of the Indian Constitution, emphasized the critical importance of the CAG's office in maintaining the integrity of public financial administration. He viewed the CAG as a guardian of the public purse.
• Statement III: The CAG’s role is limited to auditing central government accounts only.
  This statement is incorrect. The CAG audits the accounts of both the Union Government and the State Governments. The CAG also audits the accounts of government companies, corporations, and autonomous bodies substantially financed by the government, as well as receipts of the government.

Key Constitutional Provisions related to CAG:

• Article 148: Provides for the appointment of the CAG, who is independent of the executive.
• Article 149: Defines the duties and powers of the CAG regarding the audit of accounts of the Union and States.
• Article 150: States that the accounts of the Union and of the States shall be kept in such form as the CAG may, with the approval of the President, prescribe.
• Article 151: Mandates that reports of the CAG relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament. Similarly, reports relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.

Background and Significance:

• The CAG is appointed by the President of India.
• The term of office for the CAG is six years or up to the age of 65, whichever is earlier.
• The CAG is not eligible for reappointment to that office.
• The CAG can be removed from office in like manner and on the like grounds as a judge of the Supreme Court.
• The CAG submits audit reports to Parliament and state legislatures, which are then examined by Public Accounts Committees (PACs). These committees play a crucial role in ensuring accountability.