ROLE OF CAG IN GOOD GOVERNANCE:

- Mansi Gupta
 During the Course of my presentation, I would cover the following things:
o Constitutional Post of CAG
o Functions of CAG
o Contribution in ensuring Good governance.
o Way Forward

CONSTITUTIONAL POST OF CAG:

- CAG is an independent authority under the Constitution of India. He is the head of the
Indian audit & account department and chief Guardian of Public purse.
- Dr. B.R. Ambedkar, "The Comptroller and Auditor General of India will be the most
important under the Constitution of India official. He should be the guardian of the
public purse and it is your duty to see that not a penny the Fund has not spent
Consolidation of India or a state without the authority of the appropriate legislative
power.
- Historically speaking, the office of auditor dates back to 1860 during the British era.
With some changes, it was incorporated within the Constitution of India
- Broadly Article 148 to 151 deals with the role of CAG in India. While, Article
148 broadly deals with the CAG appointment, oath and conditions of service. Article
149 deals with Duties and Powers of the Comptroller and Auditor-General of India.
Article 150 says that the accounts of the Union and of the States shall be kept in such
form as the President may, on the advice of the CAG, prescribe and Article 151 says
that the reports of the Comptroller and Auditor-General of India 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.
- In 1971 the central government enacted the Comptroller and Auditor General (Duties,
Powers, and Conditions of Service) Act, 1971. The act made CAG responsible for
both accounting and auditing duties for central and state governments. In 1976 CAG
was relieved from accounting functions.
- Also, since the 1990s CAG has undergone rapid computerization and modernization
and pervasive nature of Indian corruption has kept CAG vigilant and it has audited
 and investigated some of the worst and most controversial corruption scandals in
Indian history.
- To maintain the sanctity of this post, there are various provisions in the Constitution
which ensure that the independence of CAG is maintained. For instance,
o CAG is appointed by the President by warrant under his hand and seal and
provided with tenure of 6 years or 65 years of age, whichever is earlier.
o CAG can be removed by the President only in accordance with the procedure
mentioned in the Constitution that is the manner same as removal of a
Supreme Court Judge.
o He is ineligible to hold any office, either under the Government of India or of
any state, once he retires/ resigns as a CAG.
o His salary and other service conditions cannot be varied to his disadvantage
after appointment.

WHAT DOES IT LARGELY DO?

I would discuss in short what all the office of CAG is expected to do:

- First, AG audits the accounts related to all expenditure from the Consolidated Fund
of India, Consolidated Fund of each state and UT’s having a legislative assembly.
- He audits all expenditure from the Contingency Fund of India and the Public
Account of India as well as the Contingency Fund and Public Account of each state.
- He audits all trading, manufacturing, profit and loss accounts, balance sheets and
other subsidiary accounts kept by any department of the Central Government and the
state governments.
- He audits the receipts and expenditure of all bodies and authorities substantially
financed from the Central or State revenues; government companies; other
corporations and bodies, when so required by related laws.
- He audits the accounts of any other authority when requested by the President or
Governor e.g. Local bodies.
- He advises the President with regard to prescription of the form in which the accounts
of the Centre and States shall be kept.
- He submits his audit reports relating to the accounts of the Centre to the President,
who shall, in turn, place them before both the houses of Parliament.
 - He submits his audit reports relating to the accounts of a State to the Governor, who
shall, in turn, place them before the state legislature.
- CAG also acts as a guide, friend and philosopher of the Public Accounts Committee
of the Parliament.

ROLE IN GOOD GOVERNANCE

- Good governance simply means that the decision making by the government is
participatory, consensus oriented, accountable, transparent, responsive, effective and
efficient, equitable and inclusive and follows the rule of law.
- As per IMF and WB – Corruption remains the biggest obstacle to sustainable
economic growth, good governance and development.
- Now CAG, is the institution through which the accountability of the government
and other public authorities (all those who spend public funds) to Parliament and State
Legislatures and through them to the people is ensured. Government Audit plays an
important role in the scheme of parliamentary financial control and ensures that
the executive bodies keep expenditure and budget allocation within the sums
allotted and for the purposes authorized.
- So misappropriation of funds resulting from overspending or spending personal
benefits is discovered.
- Not only this – he does a social audit – checking the implementation of public sector
programs and ensuring accountability of program managers of the public sector.
- The purpose of CAG reports is to call the attention of the executive to gaps that arise
in the process of implementing the policy guidelines. The intent is to improve the
delivery system of financial administration for society experiences the efficiency and
effectiveness of government institutions and good governance prevails.
- There remains some hinderances in the role of CAG in ensuring GG:
o A large number of entities including regulators such as TRAI, Petroleum
Board remains outside the purview of CAG audit
o Government in a lot of cases disburse funds directly to NGOs or urban bodies
or PPP funding which again escape scrutiny.
o There are delays in production of records for audit without any sanction on the
government departments.

Way Forward:
 - Appointment: Currentlt executive plays a major role in their appointment, however,
the Vinod Rai committee suggests that - A collegium type mechanism to choose a
new CAG on the lines of selecting a Chief Vigilance Commissioner (CVC).
- The role of CAG is expected to enhanced in the wake of changing the way
government functions:
o From climate change to PPPs, there are dramatic changes happening in the
way government funding and public goods are exploited.
o In the wake of the Big Data revolution, CAG came out with a Big Data
management policy in 2016 which is a welcome step. However, the CAG
should keep ensuring that – they are able to Leveraging technology in public
audit.
o Be prepared to audit issues like implementation of SDGs and GST.

To fight delay and maladministration,

- One of the authors also suggest that - Just like the citizen’s right to get the information
within a month under RTI Act 2005, auditors should be provided access to records on
priority basis within seven days, failing which, heads of departments should be
required to explain the circumstances that caused the delay.
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