Petition on CAG Appointment Process

Syllabus :GS 2/Governance 

In News 

• The Supreme Court is examining a plea challenging the sole prerogative of the Centre, acting through the President, to appoint the Comptroller and Auditor General of India.

Comptroller and Auditor General (CAG) of India.

• The CAG plays a critical role in overseeing financial accountability of the Union, State governments, and Panchayati Raj institutions.
• Constitutional provisions:
  • Article 148: The CAG is appointed by the President and can only be removed in the same manner as a Supreme Court judge.
    • The salary, allowances, and conditions of service of the CAG are determined by Parliament and cannot be changed to their disadvantage once appointed.
    • The CAG is ineligible for any further office after leaving the position.
  • Article 149: The CAG is responsible for auditing the accounts of both the Union and the States, as prescribed by law.
    •  It continues the duties previously held by the Auditor-General of India before the Constitution’s enactment.
  • Article 150: The form in which accounts of the Union and States are kept is prescribed by the President, based on advice from the CAG.
  • Article 151: The CAG’s audit reports on Union accounts are submitted to the President, who ensures they are laid before Parliament.
    • For state accounts, the reports are submitted to the respective Governor and laid before the state legislature.
  • Article 279: The CAG certifies the “net proceeds” of taxes and duties, and its certificate is final.

Recent Issues and Concerns 

• There is an argument that the executive-controlled appointment process of CAG violates the Constitution.
  • The executive can exert control over the CAG’s independence, thereby undermining its role as a neutral, objective watchdog. 
• Recent issues with the CAG’s work were highlighted including delays in audits, a decline in Union government audits, and allegations of corruption in recruitment.
• The challenge has arisen amid recent CAG reports that exposed irregularities in public fund management, such as those related to Delhi’s excise policy and Uttarakhand’s Compensatory Afforestation Fund Management.
  • These reports have also led to tensions between the CAG and the executive, particularly regarding the timing and presentation of reports.

Proposed Reforms

• Proposals to address the tensions between the CAG and the executive include establishing a separate selection committee for the CAG.
• Setting time limits for the presentation of reports, and reforming the auditing structure to include a multi-member body.
• Additionally, critics have suggested that creating separate auditing bodies for states, as seen in federal countries like Australia and the US, might help improve the system.
• There are also suggestions that the President should appoint the CAG in consultation with a non-partisan selection committee, comprising the Prime Minister, the Leader of the Opposition, and the Chief Justice of India.

Conclusion 

• The CAG remains a crucial institution in India’s democratic framework, but addressing existing issues requires a balanced approach that respects its constitutional mandate while ensuring its independence and effectiveness.

Source: TH