Examining the Constitutional Framework of the CAG

THE CONSTITUTION OF INDIA

Part V.—The Union

CHAPTER V.

COMPTROLLER AND AUDITOR-GENERAL OF INDIA

Constitutional Provision

Article 148. Comptroller and Auditor-General of India.

(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.

Explanation:

Article 148 establishes the framework for the appointment, independence, and functioning of the Comptroller and Auditor-General of India, an important constitutional office responsible for auditing and ensuring financial accountability within the Indian government. It emphasizes their independence, protects their conditions of service, and provides them with the necessary resources to carry out their duties effectively.

Appointment and Removal:

The President of India appoints the Comptroller and Auditor-General of India.

This appointment is made through a formal warrant issued under the President's hand and seal.

The CAG can only be removed from office in the same manner and on the same grounds as a Judge of the Supreme Court. This provision is essential to ensure the independence of the CAG from political influence. It means that the CAG can only be removed through an impeachment process, ensuring their autonomy in auditing government finances.

Oath or Affirmation:

Before officially assuming office, the CAG must make and subscribe to an oath or affirmation.

This oath or affirmation is to be made before the President of India or another person appointed by the President for this purpose.

The specific wording of the oath or affirmation is laid out in the Third Schedule of the Constitution, ensuring a standardized and solemn commitment to upholding the duties of the office.

Salary and Conditions of Service:

The salary and other terms and conditions of service for the Comptroller and Auditor-General are initially specified in the Second Schedule of the Constitution.

However, these conditions are subject to change through legislation passed by Parliament. Until such laws are enacted, the conditions specified in the Second Schedule remain in effect.

Importantly, the Constitution safeguards the CAG's interests by ensuring that changes in their salary or conditions of service cannot be made to their disadvantage once they are appointed. This provision safeguards their independence.

Ineligibility for Further Office:

After serving as the Comptroller and Auditor-General, an individual is not eligible for further government office under the Government of India or any State government.

This provision prevents any potential conflict of interest or influence by ensuring that former CAGs do not hold other government positions.

Conditions of Service for Audit and Accounts Department:

The article grants the President the authority to determine the conditions of service for individuals working in the Indian Audit and Accounts Department. These conditions are established through rules made by the President, following consultation with the CAG.

This provision helps ensure that the CAG has the necessary control and authority over the personnel in their office to carry out their auditing and accounting functions effectively.

Funding:

The administrative expenses of the Comptroller and Auditor-General's office, which include salaries, allowances, and pensions for its staff, are directly charged to the Consolidated Fund of India.

This means that the funds required for the proper functioning of the CAG's office are automatically allocated without the need for separate budget approvals, further enhancing the independence of the CAG's office.

Constitutional Provision

Article 149. Duties and powers of the Comptroller and Auditor-General.

The Comptroller and Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament and, until provision in that behalf is so made, shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States as were conferred on or exercisable by the Auditor-General of India immediately before the commencement of this Constitution in relation to the accounts of the Dominion of India and of the Provinces respectively.

Explanation:

Article 149 establishes the broad framework for the responsibilities of the Comptroller and Auditor-General of India, emphasizing that the specific duties and powers will be detailed in laws passed by Parliament. The transitional clause ensures that the CAG's functions remain consistent with those of the predecessor office, the Auditor-General of India, until such legislation is enacted. The CAG plays a crucial role in ensuring financial accountability and transparency within the government at both the central and state levels.

Duties and Powers:

The primary role of the Comptroller and Auditor-General (CAG) is to audit and examine the accounts related to the Union (i.e., the central government), the States (i.e., state governments), and any other authorities or bodies as prescribed by or under laws passed by Parliament.

The CAG's duties and powers in relation to these accounts are defined by laws made by Parliament. In other words, the specific functions, responsibilities, and auditing procedures of the CAG are determined by legislation passed by the Indian Parliament.

Transition Clause:

This article also contains a transitional provision that specifies the CAG's duties and powers until Parliament enacts legislation to define them more precisely.

Until such legislation is enacted, the CAG is directed to perform duties and exercise powers in relation to the accounts of the Union (central government) and the States (state governments) that were previously conferred upon or exercisable by the Auditor-General of India immediately before the commencement of the Indian Constitution.

This transitional clause helps ensure a smooth transition from the pre-constitutional era when the Auditor-General of India served a similar function.

(Subs. by the Constitution (Forty-second Amendment) Act, 1976, s. 27, for art.150 (w.e.f. 1-4-1977))

Constitutional Provision:

Article 150. Form of accounts of the Union and of the States.

The accounts of the Union and of the States shall be kept in such form as the President may, (Subs. by the Constitution (Forty-fourth Amendment) Act, 1978, s. 22, for "after consultation with" (w.e.f. 20-6-1979)) [on the advice of] the Comptroller and Auditor-General of India, prescribe.

Explanation:

Article 150 establishes the process by which the accounts of the Union and the States are to be maintained. The President, based on the advice of the Comptroller and Auditor-General of India, determines the specific format or form in which these accounts are recorded and presented. This ensures standardized accounting practices and transparency in financial reporting for the central and state governments.

Form of Accounts:

This article specifies that the accounts of both the Union and the States shall be kept in a particular form.

The form in which these accounts are to be maintained is not predetermined in the Constitution itself; instead, it is determined by the President of India.

Prescription by the President:

The President has the authority to prescribe the specific form in which the accounts of the Union and the States should be kept.

Initially, the President made this determination "after consultation with" the Comptroller and Auditor-General of India. However, this wording was later amended by the Constitution (Forty-fourth Amendment) Act, 1978, which replaced "after consultation with" with "[on the advice of]." This change essentially elevated the role of the Comptroller and Auditor-General (CAG) to provide advice and recommendations to the President regarding the form of these accounts.

Constitutional Providion

Article 151. Audit reports.

(1) The reports of the Comptroller and AuditorGeneral 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 Governor (The words "or Rajpramukh" omitted by the Constitution (Seventh Amendment) Act, 1956, s. 29 and Sch. (w.e.f. 1-11-1956)) of the State, who shall cause them to be laid before the Legislature of the State.

Explanation:

Article 151 ensures that the audit reports prepared by the Comptroller and Auditor-General (CAG) for both the Union (central government) and individual States are presented to the respective highest authorities at those levels of government. For the Union, the reports are presented to the President and then to Parliament, while for a State, they are presented to the Governor and then to the State Legislature. This mechanism helps maintain transparency, accountability, and oversight of government finances at both the central and state levels in India.

Audit Reports for the Union:

Subsection (1) of Article 151 deals with audit reports related to the accounts of the Union, which refers to the central government of India.

According to this provision, the audit reports prepared by the Comptroller and Auditor-General of India (CAG) regarding the accounts of the Union government are submitted to the President of India.

Presentation to Parliament:

After receiving the audit reports, the President is responsible for causing them to be laid before both Houses of Parliament. In India, Parliament consists of two houses: the Lok Sabha (House of the People) and the Rajya Sabha (Council of States).

Therefore, the President's duty is to present the CAG's audit reports to the Parliament, where they are typically discussed and debated.

Audit Reports for a State:

Subsection (2) of Article 151 addresses audit reports related to the accounts of a State, which refers to the government of an individual state in India.

According to this provision, the audit reports prepared by the CAG regarding the accounts of a specific state are submitted to the Governor of that state. The reference to "Rajpramukh" was omitted by the Constitution (Seventh Amendment) Act, 1956.

The Governor, in turn, is responsible for causing these audit reports to be laid before the Legislature of the State.

Second Schedule

PART E

PROVISIONS AS TO THE

COMPTROLLER AND AUDITOR-GENERAL OF INDIA

12. (1) There shall be paid to the Comptroller and Auditor-General of India a salary at the rate of *four thousand rupees per mensem.

*The Comptroller and Auditor-General of India shall be paid a salary equal to the salary of the Judges of the Supreme Court vide s. 3 of the Comptroller and Auditor General (Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971) . The salary of Judges of the Supreme Court has been raised to two lakh fifty thousand rupees per mensem by the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018 (10 of 2018), s. 6 (w.e.f. 1-1-2016).

Explanation:

The Second Schedule initially specified a specific monthly salary of four thousand rupees for the Comptroller and Auditor-General of India. However, subsequent legislative amendments, such as the Comptroller and Auditor General (Duties, Powers and Conditions of Service) Act, 1971, and the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018, changed the method for determining the CAG's salary. It is now linked to the salary of the Judges of the Supreme Court, which was increased to two lakh fifty thousand rupees per month from January 1, 2016. This change was made to ensure that the CAG's compensation remains competitive and aligned with other high-ranking officials in the country.

The salary of the Comptroller and Auditor-General (CAG) of India as outlined in the Second Schedule of the Indian Constitution:

Initial Salary:

The initial provision states that there shall be paid to the Comptroller and Auditor-General of India a salary at the rate of "four thousand rupees per mensem." In this context, "per mensem" means per month.

This initial salary amount of four thousand rupees per month was specified when the Constitution was adopted.

Amendments to the Salary:

The Second Schedule contains a note that explains subsequent amendments to the salary of the Comptroller and Auditor-General. According to this note:

The salary of the CAG was amended by the Comptroller and Auditor General (Duties, Powers and Conditions of Service) Act, 1971 (56 of 1971). This amendment changed the method for determining the CAG's salary.

The revised method ties the salary of the Comptroller and Auditor-General to that of the Judges of the Supreme Court of India. In other words, the CAG is to be paid a salary equal to that of the Judges of the Supreme Court.

Furthermore, the note mentions that the salary of the Judges of the Supreme Court was raised to two lakh fifty thousand rupees per month by the High Court and Supreme Court Judges (Salaries and Conditions of Service) Amendment Act, 2018 (10 of 2018). This amendment became effective from January 1, 2016.

12. (2) The person who was holding office immediately before the commencement of this Constitution as Auditor-General of India and has become on such commencement the Comptroller and Auditor-General of India under article 377 shall in addition to the salary specified in sub-paragraph (1) of this paragraph be entitled to receive as special pay an amount equivalent to the difference between the salary so specified and the salary which he was drawing as Auditor-General of India immediately before such commencement.

Explanation:

The purpose of this provision is to ensure that the individual who held the office of the Auditor-General, and now holds the office of the CAG under the Constitution, is not financially disadvantaged by the transition and continues to receive a salary equivalent to or greater than what they were receiving before the Constitution's commencement.

This provision reflects the principles of fairness and continuity in government positions during the transition to a new constitutional framework.

The transition from the office of the Auditor-General of India to the office of the Comptroller and Auditor-General (CAG) of India under the Indian Constitution.

Auditor-General to Comptroller and Auditor-General Transition:

Before the commencement of the Indian Constitution, there was the office of the Auditor-General of India.

Under Article 377 of the Constitution, the person who held the office of the Auditor-General of India immediately before the Constitution came into effect was designated as the Comptroller and Auditor-General of India (CAG) upon the Constitution's commencement.

Special Pay:

The passage you provided specifies that the individual who held the office of the Auditor-General of India and became the CAG under Article 377 is entitled to receive a special pay.

This special pay is calculated as the difference between two salary amounts:

The salary specified in sub-paragraph (1) of the relevant paragraph (likely referring to the initial salary specified for the CAG in the Second Schedule, as mentioned in your previous questions).

The salary that the individual was drawing as the Auditor-General of India immediately before the commencement of the Indian Constitution.

In other words, this provision ensures that the person who transitioned from the position of Auditor-General to CAG receives an additional amount to make up for any disparity in salary between the two positions.

12. (3) The rights in respect of leave of absence and pension and the other conditions of service of the Comptroller and Auditor-General of India shall be governed or shall continue to be governed, as the case may be, by the provisions which were applicable to the Auditor-General of India immediately before the commencement of this Constitution and all references in those provisions to the Governor-General shall be construed as references to the President.

Explanation:

This provision ensures continuity in the rights and conditions of service for the individual who held the office of the Auditor-General of India and subsequently became the Comptroller and Auditor-General of India under the Indian Constitution. It ensures that the terms and conditions that were applicable to the Auditor-General of India continue to apply to the CAG and that references to the Governor-General are replaced with references to the President to align with the new constitutional structure.

Rights and Conditions of Service:

This passage specifies that the rights in respect of leave of absence, pension, and other conditions of service of the Comptroller and Auditor-General of India shall be governed by the provisions that were applicable to the Auditor-General of India immediately before the commencement of the Indian Constitution.

In other words, the terms and conditions of service that were in place for the Auditor-General of India continue to apply to the person who now holds the position of the Comptroller and Auditor-General of India under the new constitutional framework.

Reference to Governor-General:

The passage also mentions that all references in those provisions to the Governor-General should be construed as references to the President.

This means that any mention of the Governor-General in the previous rules or provisions related to the Auditor-General of India should now be understood as referring to the President of India, as the office of the Governor-General ceased to exist with the adoption of the Indian Constitution and the establishment of the presidency.

Third Schedule

IV

Form of oath or affirmation to be made by the Judges of the Supreme Court and the Comptroller and Auditor-General of India:

“I, A.B., having been appointed Chief Justice (or a Judge) of the Supreme Court of India (or Comptroller and Auditor-General of India) do swear in the (name of God)/(solemnly affirm) that I will bear true faith and faith and allegiance to the Constitution of India as by law established, [that I will uphold the sovereignty and integrity of India,] that I will duly and faithfully and to the best of my ability, knowledge and judgment perform the duties of my office without fear or favour, affection or ill-will and that I will uphold the Constitution and the laws.”

[that I will uphold the sovereignty and integrity of India,] - Ins. by the Constitution (Sixteenth Amendment) Act, 1963, s. 5 (w.e.f. 5-10-1963).

Details:

This oath or affirmation is a solemn commitment that individuals appointed as Chief Justice, Judges of the Supreme Court, or the Comptroller and Auditor-General of India make when assuming their roles. It emphasizes their loyalty to the Constitution, the impartial execution of their duties, and their responsibility to uphold the laws and the integrity of India. The added clause in 1963 highlights the commitment to protecting India's sovereignty and territorial integrity.

Oath or Affirmation:

The passage specifies the text of the oath or affirmation that individuals appointed as Chief Justice or Judges of the Supreme Court or as the Comptroller and Auditor-General of India must take.

The oath or affirmation begins with the individual's name (e.g., "I, A.B.") and states their appointment as Chief Justice or Judge of the Supreme Court or as the Comptroller and Auditor-General of India.

Allegiance to the Constitution:

The oath or affirmation affirms the individual's commitment to bear true faith and allegiance to the Constitution of India as established by law.

This part of the oath emphasizes the supreme authority of the Indian Constitution and the duty of the individual to uphold it.

Performance of Duties:

The individual taking the oath pledges to perform the duties of their office diligently, faithfully, and to the best of their ability, knowledge, and judgment.

They commit to carrying out their responsibilities without fear or favor, affection or ill-will. This clause underscores the impartiality and independence required for judges and the CAG in carrying out their duties.

Upholding the Constitution and Laws:

The final part of the oath reaffirms the individual's commitment to upholding both the Constitution and the laws of India.

Additional Clause (1963 Amendment):

The text in brackets, "[that I will uphold the sovereignty and integrity of India,]" was inserted into the oath by the Constitution (Sixteenth Amendment) Act, 1963.

This addition underscores the commitment to safeguarding the sovereignty and territorial integrity of India. It reflects the importance of preserving the nation's unity and security.