Question

Consider the following statements regarding the independence of the Comptroller and Auditor General (CAG) of India:
i. The CAG is not eligible for further office under the Government of India or any state after ceasing to hold office.
ii. The CAG’s salary can be altered to his/her disadvantage after appointment.
iii. The CAG’s administrative powers over the Indian Audit and Accounts Department are prescribed by the President after consultation with the CAG.
iv. The CAG holds office at the pleasure of the President.

Which of the statements given above are correct?

• A. Only i and iii
• B. Only i and iv
• C. Only ii and iii
• D. Only iii and iv

Answer 1

Answer:

A. Only i and iii

Comptroller and Auditor General (CAG) of India: Independence and Powers

• Constitutional Safeguards for Independence: The CAG of India is a crucial constitutional authority whose independence is guaranteed by the Constitution to ensure impartial audit of government accounts.
• Statement (i) - Post-Retirement Restrictions:
  • The CAG is barred from holding any office under the Government of India or any state upon retirement. This provision prevents potential conflicts of interest and ensures that the CAG can perform their duties without fear or favor.
  • This restriction is a significant aspect of the CAG's independence, as outlined in Article 148(4) of the Indian Constitution.
• Statement (ii) - Salary Protection:
  • The salary and other conditions of service of the CAG are determined by an Act of Parliament.
  • Crucially, the CAG's salary and allowances cannot be altered to their disadvantage after appointment. This is a fundamental safeguard for an independent judiciary and audit institution, similar to that provided for Supreme Court judges.
  • Article 148(3) read with the Second Schedule of the Constitution ensures this protection.
• Statement (iii) - Administrative Powers:
  • The CAG prescribes the conditions of service of persons serving in the Indian Audit and Accounts Department and the administrative powers of the CAG over the department.
  • These powers are determined by the CAG with the approval of the President. The President's approval is required, but the conditions and powers are *prescribed by the CAG*, not by the President independently.
  • This is clarified under Article 148(5) of the Constitution. The statement incorrectly suggests the President prescribes these powers after consultation; it's the CAG who prescribes them with Presidential assent.
• Statement (iv) - Security of Tenure:
  • The CAG holds office for a term of six years or up to the age of 65, whichever is earlier.
  • The CAG can be removed from office in a manner similar to that of a judge of the Supreme Court, i.e., by an order of the President passed after an address in each House of Parliament, supported by a special majority, on grounds of proven misbehavior or incapacity.
  • Therefore, the CAG does not hold office at the 'pleasure of the President,' which implies arbitrary removal.
• Significance of CAG:
  • The CAG is responsible for auditing all receipts and expenditures of the Government of India and state governments, including those of government companies and corporations.
  • The CAG presents audit reports to Parliament and state legislatures, which are then scrutinized by Public Accounts Committees (PACs).
  • This role makes the CAG a vital watchdog of public finances and a key institution for ensuring accountability and transparency in governance.