Appointment to various Constitutional Posts, Powers, Functions and Responsibilities of various Constitutional Bodies.
In News: President Droupadi Murmu: CAG plays key role in accountability of public finance
Discuss the role of the Comptroller and Auditor General of India (CAG) in strengthening democratic governance and ensuring accountability in the management of public funds.
The Comptroller and Auditor General of India (CAG) established under Article 148, plays a crucial role in strengthening democratic governance and ensuring accountability in the management of public funds through several key functions and responsibilities.
CAG strengthening democratic governance:
- The CAG’s reports promote transparency by public scrutiny of government financial affairs to reduce corruption.
- Maintaining the separation of powers:The CAG’s audit of the PM-KISAN scheme in 2020 revealed discrepancies in fund utilisation, thereby checking executive power.
- The CAG’s role in ensuring financial discipline and accountability contributes to the strengthening of democratic institutions.
- Good governance by identifying inefficiencies and recommending improvements.
- Strengthening Local Governance by providing training and guidance to local auditors.
- Engaging citizens through frameworks to identify mismanagement risks and improve audit effectiveness
CAG ensuring accountability
- The primary function of the CAG is to audit and ensure that public funds are spent according to legal provisions and intended purposes, thereby holding the government accountable to its citizens.The CAG’s audit of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in 2015 highlighted issues in wage payments and worksite facilities, leading to improvements in scheme implementation.
- The CAG has integrated auditing of SDGs into its work of the Swachh Bharat Mission in 2019 assessed progress towards the SDG of ensuring access to sanitation for all
- The CAG submits audit reports to Parliament and empowers citizens by providing them access to information.
- The CAG’s audits can trace the flow of funds from the Union to the grassroots, identifying leakages and ensuring intended beneficiaries receive welfare benefits
Despite its critical role, the CAG faces several challenges:
- The opacity of appointments to the CAG position leads to the potential conflicts of interest.
- Resource limitations can hinder its ability to conduct thorough audits.
- Limited access to information can hinder thorough audits.
- Political interference can compromise independence.
- Complex financial transactions which makes it difficult for the CAG to track and audit these transactions effectively.
- Delays in submitting audit reports can affect parliamentary scrutiny.
- Lack of specialised expertise can hinder the identification of irregularities.
- Limited enforcement powers can limit the impact of its work and reduce its deterrent effect.
The CAG serves as a cornerstone of accountability in India’s democratic framework. Addressing its challenges is essential for its effective contribution to India’s democratic framework.
| PYQ: “The duty of the Comptroller and Auditor General is not merely to ensure the legality of expenditure but also its propriety.” Comment. 2024“The Comptroller and Auditor General (CAG) has a very vital role to play.” Explain how this is reflected in the method and terms of his appointment as well as the range of powers he can exercise.2018Exercise of CAG’s powers in relation to the accounts of the Union and the States is derived from Article 149 of the Indian Constitution. Discuss whether audit of the Government’s policy implementation could amount to overstepping its own (CAG) jurisdiction.2016 |