COMPTROLLER AND AUDITOR GENERAL (CAG)

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Context: Girish Chandra Murmu, the Comptroller and Auditor General of India (CAG), has achieved a remarkable feat by securing a second consecutive term as the External Auditor of the World Health Organization (WHO). He will continue to oversee the financial management and accountability of the global health body for another four years from 2024 to 2027.

Details

• This is a rare honour for the CAG of India, who is already serving as the External Auditor of the WHO since 2019 for a four-year term from 2019 to 2023. He was re-elected at the 76th World Health Assembly in Geneva, where he received overwhelming support from the member states.
  • He won 114 out of 156 votes in the first round of voting itself, defeating other contenders from China, France, Italy and Switzerland.

Significance

• The re-election of the CAG of India as the External Auditor of the WHO reflects his competence and credibility in conducting independent and objective audits of the organization's financial operations and performance.
• It also demonstrates the trust and confidence that the international community has in India's role and contribution to global health governance and cooperation.

Comptroller and Auditor General of India (CAG)

About

• The CAG is a constitutional authority that audits the accounts of the Union and State governments and other public entities.
• It is established under Article 148 of the Constitution of India.
• The CAG is appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on like grounds as a Judge of the Supreme Court.
• The CAG is the supreme audit institution of India and enjoys the same status as a judge of the Supreme Court of India.
• It is accountable to the Parliament/Legislatures and acts as a guardian of public funds.
• The salary and other conditions of service of the CAG are determined by Parliament by law and cannot be varied to his disadvantage after his appointment.
• The CAG is not eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold office.

The main functions of the CAG are:

• To audit the receipts and expenditures of the Government of India and the State Governments, including those of autonomous bodies and corporations substantially financed by the Government.
• To audit the accounts of Government-owned corporations and conduct a supplementary audit of government companies in which the Government has equity share of at least 51% or subsidiary companies of existing government companies.
• To report on the accounts and audit findings to the Parliament/Legislatures and assist the Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs) in examining the accounts and audit reports.
• To prescribe the form of accounts of the Union and State governments in consultation with the President of India.
• To head the Indian Audit and Accounts Department and manage its affairs.

 

Significance

• The CAG plays a vital role in ensuring transparency, accountability and good governance in India.
• The CAG's reports provide valuable insights into the financial performance, compliance, efficiency and effectiveness of various government programs and activities.
• The CAG's reports also highlight the gaps, weaknesses and irregularities in the public financial management system and suggest corrective measures for improvement.
• The CAG's reports serve as a basis for parliamentary oversight and public debate on various issues related to public finance.

The CAG faces some challenges in fulfilling its constitutional mandate. Some of these challenges are:

• The scope and coverage of audit by the CAG are limited by various factors, such as exemptions granted to certain bodies from audit, delays in submission of accounts by auditees, lack of access to records and information, etc.
• The quality and timeliness of audit reports by the CAG may be affected by various factors, such as shortage of staff, inadequate training and skills, lack of coordination with other agencies, etc.
• The impact and effectiveness of audit by the CAG may be reduced by various factors, such as the non-implementation or partial implementation of audit recommendations, lack of follow-up action by PACs/COPUs, lack of public awareness and participation, etc.

The way forward for enhancing the role and performance of the CAG may include:

• Expanding and strengthening the scope and coverage of audits by the CAG to include all bodies that receive public funds or perform public functions, ensuring timely submission of accounts by auditees, securing access to records and information, etc.
• Improving the quality and timeliness of audit reports by the CAG by adopting international standards and best practices, enhancing staff capacity and competence, fostering coordination and cooperation with other agencies, etc.
• Increasing the impact and effectiveness of audit by the CAG by ensuring implementation and monitoring of audit recommendations, strengthening follow-up action by PACs/COPUs, raising public awareness and participation, etc.

Conclusion

• The CAG is an independent and impartial institution that works with integrity, professionalism and objectivity. The CAG strives to uphold the public trust and confidence in its work. The CAG also fosters cooperation and coordination with other audit institutions at national and international levels. The CAG aims to contribute to the national development goals and promote good governance in India.

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World Health Organization: https://www.iasgyan.in/daily-current-affairs/75-years-of-world-health-organisation

PRACTICE QUESTION Q. Consider the following statements. 1. The CAG of India holds office for a term of 5 years or up to 65 years of age. 2. The CAG of India is empowered to audit all receipts and expenditures of the Government of India and the State Governments. 3. The Public Accounts Committee examines CAG's reports on appropriation accounts. How many of the above statements are correct? A) 1 only B) 2 only C) 3 only D) All Answer: B Explanation: Statement 1 is incorrect: The CAG of India holds office for a term of 6 years or up to 65 years of age, whichever is earlier. He can resign at any time by addressing his resignation to the President. He can also be removed by the President on the same grounds and in the same manner as a judge of the Supreme Court. Statement 2 is correct: The CAG of India is empowered to audit all receipts and expenditures of the Government of India and the State Governments, including those of autonomous bodies and corporations substantially financed by the Government. He also controls the issue of money from the consolidated fund of India and is responsible for its auditing. He reports on the accounts and finances of the Government to the Parliament/Legislatures and his reports are taken up for discussion by the Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs).  Statement 3 is correct: The Public Accounts Committee (PAC), which consists of members from both Houses, examines CAG's reports on appropriation accounts which show whether money granted by Parliament has been spent within the scope granted under various grants/appropriations voted by Parliament/Legislatures.

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