CHAPTER V: Comptroller and Auditor-General of India
Article 151: Audit Reports
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(1) The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament.
(2) The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor1*** of the State, who shall cause them to be laid before the Legislature of the State.
1. The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956).
Explanations
Article 151 of the Constitution of India outlines the procedures for presenting the audit reports of the Comptroller and Auditor-General (CAG) of India. These reports hold critical importance in ensuring transparency and accountability in government finances. By mandating the submission of these reports to the President and Governors, and their subsequent presentation before the Parliament and State Legislatures, this article strengthens democratic oversight over public expenditure.
Clause-by-Clause Explanation
Clause 1: Submission of Union Accounts Reports
According to Clause (1) of Article 151, the Comptroller and Auditor-General's audit reports regarding the accounts of the Union are to be submitted to the President. The President is then responsible for ensuring these reports are presented before both Houses of Parliament. This process ensures that the financial activities of the Union Government are subject to parliamentary scrutiny, providing a mechanism for checks and balances over public spending.
Clause 2: Submission of State Accounts Reports
Clause (2) states that the Comptroller and Auditor-General’s audit reports on the accounts of a State must be submitted to the Governor. The Governor, in turn, is required to lay the reports before the State Legislature. This ensures that the financial operations of the state governments are made transparent and that legislators have an opportunity to review and question the state's expenditure and financial practices.
Amendments
Seventh Amendment (1956): The words "or Rajpramukh" were removed from Clause (2) through the Constitution (Seventh Amendment) Act, 1956. This amendment was a significant reform, made as part of the reorganization of states in India, which abolished the office of the Rajpramukh (a title used for certain hereditary rulers).
Real-Life Example
In 2016, the CAG presented its audit report on the government's implementation of the Goods and Services Tax (GST). The report highlighted various lapses and inefficiencies in the system, such as delays in refunds and discrepancies in tax collections. Once tabled in Parliament, it prompted discussions and led to reforms to address the identified issues.
A recent CAG report from 2022 that reviewed the expenditure on various COVID-19 relief measures revealed inconsistencies in the use of funds allocated for pandemic response. After the report was tabled in Parliament, it triggered a national debate on the efficacy of relief efforts, leading to recommendations for improving transparency in the disbursement of funds.
Historical Significance
The importance of Article 151 can be traced to British colonial times, when the Auditor-General was responsible for reviewing public expenditure. After independence, this function evolved into the Comptroller and Auditor-General, an independent authority under the Constitution. The framers of the Constitution recognized the necessity of regular, independent audits to ensure responsible fiscal management. Article 151 gives constitutional backing to this process, which has played a pivotal role in India's fiscal accountability.
Legislative History
Article 151 of the Indian Constitution, initially proposed and discussed as Article 127 of the Draft Constitution, was officially adopted into the Indian Constitution on May 30, 1949.
Debates and Amendments
During the deliberations of the Constituent Assembly, Dr. B. R. Ambedkar proposed an amendment to replace the word "Parliament" with "each House of Parliament" in Article 127. It was adopted by the Constituent Assembly. Article 127, as amended, was incorporated into the Constitution.
References
- The Constitution (Seventh Amendment) Act, 1956
- CAG Report on GST Implementation, 2016
- CAG Report on COVID-19 Relief Expenditure, 2022
Frequently Asked Questions (FAQs):
Article 151 mandates that the Comptroller and Auditor-General’s audit reports on the accounts of the Union be submitted to the President, and those on the accounts of a State be submitted to the Governor. The President and Governors must then ensure these reports are laid before the respective legislative bodies.
The Seventh Amendment (1956) removed the words "or Rajpramukh" from Clause (2), aligning the terminology with the reorganization of states and abolishing the office of the Rajpramukh, a hereditary ruler's title.
The CAG plays a crucial role in ensuring transparency and accountability in government finances by auditing the financial activities of both the Union and the States. These audit reports are essential for parliamentary and legislative scrutiny of public expenditures.