(Comptroller and Auditor General of India)–Supreme Audit Institution of India
The CAG of India is an authority, established by the Constitution of India, who audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government. The CAG is also the external auditor of government-owned companies. The reports of the CAG are taken into consideration by the Public Accounts Committees, which are special committees in the Parliament of India and the state legislatures . The CAG of India is also the head of the Indian Audit and Accounts Department, which has over 58,000 employees across the country. He is the head of Indian Audit and Accounts Department. His duty is to uphold the constitution of India and laws of the Parliament in the field of financial administration.
Now a day’s CAG is Famous all over the India for its report on many scams. By declaring 2G Spectrum Report it gives us a very satisfied report on corruption role in 2G Spectrum Sale. All the investigation of CBI and Parliament is go ahead on the basis of CAG Report. Just like this Report on commonwealth games also Frightened Govt. of India. And even in Maharashtra’s Adarsh Housing Scheme, It disclosed Scam how minister and defense officers violate this which was basically formed especially for Widows of defense person. As well as CAG Report on Audit of Air India disclosed that Air India Purchased two times more Planes than its Requirement
Now it is asked CAG that it had crossed its powers given by Constitution. But we should have to understand about Role and Power given to CAG by Constitution.
Seven principles of Functioning of CAG :
1. CAG Works according to power given by Constitution of India and keeps on doing like this on both the level of Centre and State. And even Baba Saheb Bhim Rao Ambedkar told that CAG will become a very big Institution of India.
In recent past Indian Budget have become very complicated and tedious, therefore CAG role have increased in control and audit. In present era CAG role have become increased. Therefore we have to evaluate powers given to CAG by constitution of India
2. In India Audit done by CAG is in the nature of Reactive way (means audit after incurred of money). But in countries like Japan, New Zealand, France and Australia audit is in the nature of Proactive way (means control and Audit before incurred of money). Some people told that functions of CAG is just like operation of patient after his Death. But it is the bad luck of CAG that Constitution did not give efficient powers to take action after Investigation of fraud. Even CAG do not have power to order to Organization to Inspect activity of fraudulent officers of organisation
3. Third one is National commission made for Inspection of Constitution proposed to incorporate a constitutional Audit Institution, in which each member have same constitutional position. In countries like Japan, Germany and South Korea have made Audit Board or Audit Court. But in India CAG have not many power due to this it cannot do its work efficiently.
4. According to our constitution CAG is a Comptroller as well as Auditor General of India. But it is only functioning only as an Audit body not working as a controller of Govt. Expenditure and Operation. Indian CAG is differentiate in this matter from Britain’s CAG. In Britain CAG has both the powers to Inspect and Audit.
5. In our constitution there is no process exist which explains How CAG’s Members and President is appointed by President of India. But in countries like Britain by confirmation of Public Audit committee Prime minister propose a name and then it took before “House of Commons” and House of commons decide members and President of CAG. But in our constitution there is no process exist which explains how CAG’s Members and President is appointed by President of India.
6. In India there is no process or outside Agency who inspect or Audit of functioning of CAG’s own procedure and Operation. In Britain Audit of CAG is done by an outside Agency. There is need of the audit of CAG because Institution who is inspecting operation and Expenditure of Central and State Govt. it should be audited for a clear cut picture.
7. CAG is Audit Body not inspectional body. Unlike other constitutional Agency it does not have power which gives it power to control every aspects of Govt. Expenditure efficiently. But we can believe that CAG will professionally audit and Inspection of Govt. bodies. It should be a important part of India.
CAG have demanded to change Act of 1971. In which CAG cannot audit operation and Expenditure of Organizations in which both Govt. and Private person hold ownership. And in present era Govt. and Private Partnership increasing in present era.
By studying all the above aspects Govt. should take steps for Bringing a more Strong Structure to CAG.