Comptroller and Auditor General of India (CAG)
The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG). He is the head of the Indian audit and accounts department.
He is the guardian of the public purse and controls the financial system of the country both at the central level and state level.
CAG is one of the strongest walls of the democratic system, as the Supreme Court, Election Commission of India (ECA), and the Union Public Service Commission (UPSC).
Background of CAG
The role of CAG evolved in British India with Lord Canning. In 1858 for the first time, a separate department was set up for auditing and accounting transactions under the East India Company.
Sir Edward Drummond, in 1860 took charge as the first Auditor General, and the term ‘Comptroller and Auditor General of India’ was used for the first time in 1884.
Constitutional Provisions Related to CAG
Part V, Chapter V of the Constitution of India, talks about the Comptroller and Auditor General of India.
Article 148 speaks of the CAG, his appointment, the oath of his service.
Article 149 broadly speaks of the duties and powers of the CAG.
Article 150: The accounts of the Union and States shall be kept in such form as the President may prescribe on the advice of the CAG.
Article 151: The reports of the CAG relating to the Union shall be submitted to the President. The reports of the CAG relating to the State shall be submitted to the Governor.
Functions of CAG
For example, local bodies.
Dedicated to Truth in Public Interest
Role of CAG
For example, ONGC, Air India, and others.
Audit Board, 1968
In 1968 an Audit Board was established as a part of the office of CAG to associate with outside specialists and experts to handle technical aspects of the audit. Board was established on the recommendation of the Administration Reforms Commission of India.
Mode of Appointment
The selection process is entirely internal to the Government as to what criteria are applied and how names are shortlisted. Presently there is a lack of clarity.
Recent Example
Two PILs have also been filed in Supreme Court against the former Defence Secretary Shashi Kant Sharma as CAG (2014-17). His appointment is thus being questioned in the context of conflict of interest and also that it goes against the code of ethics of auditors.
Recommendation
There is a need to frame a transparent selection procedure based on definite criteria. A selection committee may be appointed in this regard.
Current CAG
The Current CAG is Rajiv Mehrishi. He was elected as Vice Chairman of the United Nations Panel of External Auditors at its annual meeting held in New York. V Narahari Rao was the first Indian Civil Servant who served as CAG.