Q.9. “Constitutional bodies in India need to fulfill the role of the watchdog of democracy while keeping themselves out of executive interference.” Discuss this statement while critically evaluating the functioning of the Comptroller and Auditor General(CAG) of India.
04,Oct 2024
Posted By : SPM Academy
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Constitutional bodies in India, such as the Comptroller and Auditor General (CAG), play a critical role in safeguarding democracy by ensuring accountability, transparency, and the rule of law. They are entrusted with the responsibility to function as independent watchdogs of democracy, protecting public interests while remaining free from executive interference. The CAG of India, established under Article 148 of the Indian Constitution, exemplifies this principle by auditing the government’s expenditure and ensuring public funds are used effectively. However, the independence and efficacy of the CAG in fulfilling this role have been a subject of critical evaluation over the years.
Role of Constitutional Bodies as Watchdogs of Democracy
A. Independence from Executive Control:
Constitutional bodies such as the Election Commission of India (ECI), the CAG, and the Union Public Service Commission (UPSC) are designed to operate independently of the executive to maintain checks and balances.
The CAG, in particular, acts as a guardian of public finances, auditing government expenditure to ensure it is in accordance with the law and public interest. As Dr. B.R. Ambedkar emphasized during the Constituent Assembly debates, “The CAG shall be the most important officer under the Constitution of India, more important than even the judiciary.”
B. Accountability and Transparency:
The CAG audits the accounts of the Central and State governments, as well as other government-funded bodies. By reporting its findings to the Parliament and State legislatures, the CAG promotes transparency and holds the executive accountable for its financial decisions.
Example: The CAG’s audit reports on the 2G spectrum allocation (2010) and the Coal Block Allocation (2012) uncovered massive financial irregularities and highlighted the mismanagement of public resources, resulting in policy reforms and legal actions.
C. Safeguarding Democratic Values:
By scrutinizing government expenditure and ensuring compliance with laws, the CAG helps protect public trust in democratic institutions. The Constitution empowers the CAG to function without fear or favor, ensuring that financial corruption or inefficiency does not undermine democratic governance.
Constitutional Provisions and Safeguards for CAG’s Independence
1. Article 148:
The CAG of India is appointed by the President and enjoys a secure tenure, holding office for a term of six years or until the age of 65, whichever is earlier. The CAG’s removal is as difficult as that of a Supreme Court judge, requiring a special process of impeachment.
2. Article 149 and 150:
Article 149 defines the duties and powers of the CAG, authorizing it to audit government accounts and public funds, while Article 150 ensures that the form of accounts of the Union and States is prescribed only on the advice of the CAG.
3. Article 151:
Article 151 mandates that the CAG’s reports are laid before Parliament and State legislatures, ensuring transparency and public scrutiny of the executive’s financial decisions.
Critical Evaluation of the CAG’s Functioning
A. Positive Contributions to Accountability:
The CAG has played a crucial role in highlighting large-scale financial mismanagement and inefficiencies within the government. In the cases of the 2G spectrum and Commonwealth Games scams, the CAG exposed irregularities running into billions of rupees, which eventually led to major political and judicial interventions.
Comment: Former Chief Justice R.M. Lodha remarked that “the CAG reports have become an effective tool for ensuring accountability of the government to the people.”
B. Challenges to Independence:
Despite constitutional safeguards, concerns about executive interference have been raised. The process of appointing the CAG is solely in the hands of the executive, with no involvement of Parliament or independent bodies, leading to potential biases or political influence. In some instances, critics have argued that CAG reports are delayed or muted, especially on sensitive matters.
Example: There were concerns regarding the CAG’s audit of the Rafale aircraft deal, where critics argued that the report was not as comprehensive as expected. Some questioned whether external pressures influenced the nature of the audit.
C. Overreach and Judicial Observations:
There have been instances where the CAG has been criticized for overstepping its mandate. The estimation of the notional loss in the 2G spectrum case was a figure of ₹1.76 lakh crore, which led to widespread public outrage. However, judicial bodies later remarked that the estimates could be speculative.
Supreme Court Observation: In the 2G case, the Supreme Court pointed out that the role of the CAG is limited to auditing and that the executive has the discretion to make policy decisions. This underscored the balance needed between auditing practices and policy-making discretion.
D. Technological Adaptation and Capacity Building:
As the economy becomes more complex, with the growth of sectors like digital finance and public-private partnerships, the CAG faces challenges in keeping up with new forms of governance. While the institution has made strides in adopting IT-based audits, there is still a need for further modernization to audit sectors like defense contracts, digital infrastructure, and climate finance.
Reforms and Recommendations for Strengthening CAG
A. 2nd Administrative Reforms Commission (ARC):
The 2nd ARC recommended that the process of appointment of the CAG should be made more transparent, suggesting a collegium system involving the Prime Minister, Leader of the Opposition, and the Chief Justice of India to ensure a more independent selection.
B. Justice R.S. Sarkaria Commission:
The Sarkaria Commission recommended better coordination between the CAG and Public Accounts Committees (PACs) to ensure that CAG reports are acted upon more effectively and their findings are fully utilized in policy reform.
C. Parliamentary Oversight:
The Public Accounts Committee (PAC), which examines CAG reports, should be further empowered to scrutinize the implementation of CAG’s recommendations. This will ensure that the findings are not merely tabled but also lead to actionable reforms.
The CAG of India plays a critical role in maintaining the fiscal accountability of the government and acting as a watchdog of democracy. However, to truly fulfill its constitutional mandate, the CAG must operate with complete independence and transparency, free from executive interference. While its contributions have been invaluable in uncovering corruption and inefficiencies, reforms—such as a more transparent appointment process and greater oversight—are necessary to strengthen the institution. As Dr. B.R. Ambedkar rightly said, “The CAG is not an arm of the executive; it is the conscience of the legislature and the guardian of the public purse,” and it must continue to uphold this critical responsibility.
