Question

With reference to the role and independence of the CAG, consider the following statements:

i. The CAG is described as the guardian of the public purse and controls the entire financial system of the country at both the Centre and State levels.
ii. The CAG can be removed by the President only on the grounds of proved misbehaviour or incapacity, following a resolution by both Houses of Parliament with a special majority.
iii. The CAG is eligible for further office under the Government of India or any State after ceasing to hold office.
iv. The administrative expenses of the CAG’s office are charged upon the Consolidated Fund of India and are not subject to the vote of Parliament.

Which of the statements given above are correct?

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

Answer 1

Answer:

B. Only (ii and iv)

Role and Independence 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 public finances. However, the statement that the CAG controls the *entire* financial system is an overstatement. While the CAG audits government expenditure and receipts, the ultimate control over financial management rests with the executive and Parliament.
• Tenure and Removal:
  • The CAG holds office for a term of six years or until the age of 65, whichever is earlier.
  • Crucially, the CAG is appointed by the President and can only be removed from office in a manner similar to that of a Supreme Court Judge. This involves an address from both Houses of Parliament, passed by a special majority, on the grounds of proved misbehaviour or incapacity. This provision ensures the independence of the office from political interference.
• Post-Retirement Eligibility:
  • To maintain impartiality and prevent potential conflicts of interest, the CAG is ineligible for any further office under the Government of India or any State after ceasing to hold the office. This is a significant safeguard for the independence of the CAG.
• Administrative Expenses:
  • The administrative expenses of the CAG's office, including salaries, allowances, and pensions of its staff, are charged upon the Consolidated Fund of India.
  • Expenses charged on the Consolidated Fund of India are *not subject to the vote of Parliament*. This crucial feature ensures that the CAG's office has the financial autonomy necessary to perform its duties without fear or favour.
• Constitutional Provisions: The powers, functions, and independence of the CAG are enshrined in Article 148 to 151 of the Indian Constitution.