CHAPTER V: Comptroller and Auditor-General of India

Article 148: Comptroller and Auditor-General of India

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(1) There shall be a Comptroller and Auditor-General of India who shall be appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court.

(2) Every person appointed to be the Comptroller and Auditor-General of India shall, before he enters upon his office, make and subscribe before the President, or some person appointed in that behalf by him, an oath or affirmation according to the form set out for the purpose in the Third Schedule.

(3) The salary and other conditions of service of the Comptroller and Auditor-General shall be such as may be determined by Parliament by law and, until they are so determined, shall be as specified in the Second Schedule:

Provided that neither the salary of a Comptroller and Auditor-General nor his rights in respect of leave of absence, pension or age of retirement shall be varied to his disadvantage after his appointment.

(4) The Comptroller and Auditor-General shall not be eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office.

(5) Subject to the provisions of this Constitution and of any law made by Parliament, the conditions of service of persons serving in the Indian Audit and Accounts Department and the administrative powers of the Comptroller and Auditor-General shall be such as may be prescribed by rules made by the President after consultation with the Comptroller and Auditor-General.

(6) The administrative expenses of the office of the Comptroller and Auditor-General, including all salaries, allowances and pensions payable to or in respect of persons serving in that office, shall be charged upon the Consolidated Fund of India.

Explanations

Article 148 of the Constitution of India establishes the office of the Comptroller and Auditor-General (CAG) of India. The CAG plays a critical role in ensuring accountability and transparency in the financial administration of both the Union and the States. This article outlines the procedure for appointing the CAG, the terms of service, and the CAG's powers and responsibilities. The Comptroller and Auditor-General is regarded as a guardian of public finances, with the authority to audit government accounts and ensure public funds are used properly.

Clause-by-Clause Explanation

Clause (1): Appointment of the Comptroller and Auditor-General

This clause states that the Comptroller and Auditor-General of India is appointed by the President of India through a warrant under his hand and seal. The CAG enjoys the same security of tenure as a judge of the Supreme Court and can only be removed from office on the same grounds and in the same manner as a Supreme Court judge, ensuring independence and impartiality.

Amendment and Historical Significance:

The constitutional provisions for the CAG have remained largely intact since the Constitution’s enactment in 1950. The focus has always been on safeguarding the independence of this office, which is critical for ensuring effective audits of government finances.

Clause (2): Oath of Office

Every person appointed as the CAG must make and subscribe to an oath or affirmation before assuming office. The oath is taken before the President or a person appointed by the President. The form of the oath is prescribed in the Third Schedule of the Constitution, ensuring the CAG commits to upholding the Constitution and performing duties faithfully.

Clause (3): Salary and Conditions of Service

The salary, pension, and other service conditions of the CAG are determined by the Parliament by law. Until Parliament enacts such laws, the Second Schedule of the Constitution applies. The salary and retirement benefits of the CAG cannot be altered to their disadvantage after their appointment, ensuring financial independence.

Example: Salary Protection

For instance, if the government were to reduce the salaries of civil servants as part of a fiscal austerity measure, the CAG’s salary would remain unaffected due to the protection provided by this clause.

Clause (4): Ineligibility for Further Office

The Comptroller and Auditor-General is not eligible for any further office in either the Union or State governments after their term ends. This provision further enhances the independence of the office by preventing any political influence on the CAG’s decision-making during their tenure.

Real-life Example: Vinod Rai's Tenure

Vinod Rai, who served as the CAG from 2008 to 2013, played a pivotal role in highlighting major financial irregularities, such as the 2G spectrum scam. Post-retirement, he did not assume any government office, upholding the principle enshrined in this clause.

Clause (5): Conditions of Service and Administrative Powers

The conditions of service for personnel serving in the Indian Audit and Accounts Department, as well as the administrative powers of the CAG, are to be prescribed by the President after consultation with the CAG, subject to any law passed by Parliament. This ensures that the CAG has authority over the staff working under them, reinforcing operational independence.

Clause (6): Administrative Expenses

The administrative expenses of the CAG’s office, including salaries and pensions, are charged upon the Consolidated Fund of India. This financial autonomy ensures that the CAG is not dependent on annual budgetary approvals by the legislature, thereby preventing any potential interference in its functioning.

Example: Financial Independence

The financial independence granted to the CAG ensures that its audits, such as the audit of state budgets or central government spending, are carried out without external pressures, leading to objective reports on government expenditures.

Historical Significance

The office of the Comptroller and Auditor-General in India was inspired by the British system of financial oversight, which dates back to colonial administration. In post-independence India, this role became crucial for maintaining financial accountability in a democratic setup. The CAG reports have often led to significant political and administrative reforms in India, particularly after high-profile audits like the 2G spectrum case and the coal block allocation audit.

Legislative History

Article 148 of the Indian Constitution, originally drafted and discussed as Article 124 of the Draft Constitution, was officially incorporated into the Constitution of India on May 30, 1949.

Debates and Amendments

In the Constituent Assembly Debate, Shri T.T. Krishnamachari suggested renaming the position to "Comptroller and Auditor-General" to reflect the expanded responsibilities of auditing and controlling government expenditures.

Shri B. Das (Orissa: General) proposed adding "by warrant under his hand and seal" after "President" in clause (1) to formalize the appointment process, similar to that of the Chief Justice of the Supreme Court.

Additionally, Krishnamachari suggested that the Comptroller and Auditor-General should take an oath before assuming office. Further amendments included allowing the Comptroller and Auditor-General to prescribe service conditions for staff, but requiring presidential approval for rules related to salaries, allowances, leave, or pensions.

Another significant proposal was to charge the administrative expenses, including salaries and pensions, of the Comptroller and Auditor-General to the revenues of India.

This sparked debate, with Shri R.K. Sidhwa (C.P. & Berar: General) emphasizing the importance of independence for the Auditor-General but opposing the idea of charging expenses to the revenues, as it would limit Parliament's voting rights.

In contrast, Shri B. Das supported the amendments, recalling the constraints faced under British rule and stressing the need for high moral standards in public expenditure. Shri Biswanath Das (Orissa: General) viewed the amendments as a balanced compromise that ensured the Auditor-General's effective and independent functioning while maintaining legislative oversight.

Dr. B.R. Ambedkar (Bombay: General) expressed concerns over the limited independence granted compared to the Judiciary but accepted the amendments as an improvement.

The House ultimately adopted the amendments, agreeing to rename the position to Comptroller and Auditor-General, formalize the appointment process, establish rules for service conditions requiring presidential approval, and charge administrative expenses to the revenues of India. This reflected a consensus on enhancing the Auditor-General's role and ensuring robust financial oversight and independence.

References

• The Constitution of India – Article 148
• Second Schedule and Third Schedule – Constitution of India
• Vinod Rai’s tenure as CAG (2008-2013)
• The 2G Spectrum Case Audit Report