Question

Which of the following statements is/are correct regarding the independence of the CAG?

(i) The CAG’s salary and service conditions are determined by the Parliament and cannot be altered to his/her disadvantage after appointment.

(ii) The CAG is eligible for further office under the Government of India or any state after ceasing to hold office.

• A. Only (i)
• B. Only (ii)
• C. Both (i) and (ii)
• D. Neither (i) nor (ii)

Answer 1

Answer:

A. Only (i)

Independence of the Comptroller and Auditor General (CAG) of India

• Constitutional Safeguards: The Constitution of India provides several provisions to ensure the independence and impartiality of the CAG. This is crucial for its role as the guardian of public finance.

• Appointment and Tenure: The CAG is appointed by the President of India and holds office for a term of six years or until the age of 65, whichever is earlier.

• Security of Tenure:

  • The CAG can be removed from office in a manner similar to that of a judge of the Supreme Court. This involves impeachment by Parliament on grounds of proven misbehaviour or incapacity.

  • This provision prevents arbitrary removal by the executive.

• Salaries and Conditions of Service:

  • Statement (i) is Correct: The salary and other conditions of service of the CAG are determined by an Act of Parliament. These conditions cannot be altered to his/her disadvantage after his/her appointment.

  • This ensures financial security and prevents the government from using financial leverage to influence the CAG's functioning.

  • The salary of the CAG is charged on the Consolidated Fund of India, meaning it is not subject to a vote of Parliament.

• Ineligibility for Further Office:

  • Statement (ii) is Incorrect: The CAG is not eligible for any office under the Government of India or any state after ceasing to hold office. This is to prevent any possibility of favouritism or bias in auditing past accounts.

  • This is a significant restriction aimed at maintaining the CAG's objectivity.

• Powers and Functions: The CAG audits all receipts and expenditures of the Government of India and state governments, including those of bodies and authorities substantially financed by the governments. The CAG submits audit reports to the President and Governors, who then lay them before Parliament and state legislatures, respectively.

• Role in Public Accounts Committee (PAC): The reports of the CAG are scrutinised by the Public Accounts Committee (PAC) of Parliament, which further strengthens accountability.

Key Constitutional Articles:

• Article 148: Appointment and conditions of service of the CAG.

• Article 149: Duties and powers of the CAG.

• Article 150: Form of accounts to be kept by the Union and States.

• Article 151: Audit reports.