Introduction
India, as the world’s largest democracy, boasts a dynamic political landscape, a diverse population, and ongoing efforts to tackle various socioeconomic challenges.
The Comptroller and Auditor General (CAG) of India is appointed under Article 148 of the Indian Constitution.
The CAG serves a six-year term from the date of assuming office, or until the age of sixty-five, whichever is earlier.
Body
The CAG plays a crucial role in India’s democratic structure by ensuring transparency, accountability, and financial integrity in government operations.
By auditing government financial activities, the CAG upholds the separation of powers between the legislature and the executive, ensuring alignment with legislative intent.
Through audit findings and recommendations, the CAG promotes good governance, helps streamline government processes, reduces inefficiencies, and enforces budgetary discipline.
Duties of CAG:
Audit of Expenditures:
Audits all expenditures from the Consolidated Fund of India, State, and Union territories with Legislative Assemblies.
Example: CAG reports on the utilization of funds in central government schemes like MNREGA ensure proper fund usage and transparency.
Audit of Transactions:
Audits transactions of the Union and States related to Contingency Funds and Public Accounts.
Example: CAG’s audit of the Public Accounts of states like Maharashtra has exposed financial irregularities, ensuring accountability.
Audit of Accounts:
Audits trading, manufacturing, profit and loss accounts, balance-sheets, and other subsidiary accounts kept by any department of the Union or State.
Example: The CAG’s audit of Indian Railways’ financial statements has highlighted inefficiencies and suggested improvements.
Conclusion
As India’s democracy evolves, the CAG’s role in fostering good governance and safeguarding public interest becomes ever more critical.
Over the years, the CAG has issued various manuals and guidelines that have formed the backbone of local government auditing and accounting practices.
The CAG’s local government audits aim to assess how effectively services related to devolved functions reach grassroots levels through local governance efforts.
Notably, in 2017, as a member of the UN Board of Auditors, the CAG of India incorporated the audit of Sustainable Development Goals (SDGs) as a cross-cutting issue in UN audits, underscoring its commitment to global accountability standards.