CAG in the Spotlight

Context:

This analysis examines the challenges facing the Comptroller and Auditor General of India (CAG), India’s apex audit body, amid a Public Interest Litigation (PIL) filed in the Supreme Court.

1. PIL on CAG Appointment: A Supreme Court PIL challenges the current appointment process of the CAG, arguing it lacks transparency and independence, as the President appoints the CAG on the PM-led government’s advice under Article 148, potentially compromising neutrality.
2. Constitutional Framework: The CAG, governed by Articles 148-151 and the CAG (Duties, Powers, and Conditions of Service) Act, 1971, audits Union and state finances independently, with its expenses charged to the Consolidated Fund of India to ensure autonomy.
3. Decline in Reports: CAG reports tabled in Parliament dropped from 40 annually (2014-18) to 22 annually (2019-23), raising concerns about delays, suppression, or reduced scrutiny of public spending.
4. Key CAG Findings:
5. • Dwarka Expressway: Highlighted inflated costs in construction.
   • Delhi Excise Policy 2021-22: Exposed procedural lapses and financial irregularities.
   • Ayushman Bharat: Found 7.5 lakh beneficiaries linked to a single phone number (999999999999), indicating data mismanagement.
5. Independence Debate: Critics allege executive influence over CAG, citing fewer reports and delayed tabling, while supporters argue its constitutional safeguards (e.g., removal like a Supreme Court judge) ensure impartiality.
6. Audit Scope Limitation: The CAG audits only 60% of public expenditure; public-private partnerships (PPPs) and certain discretionary funds remain outside its purview, limiting oversight.
7. Resource Constraints: Budget cuts (0.13% of Union Budget 2023-24) and staffing shortages have hampered timely audits, with just 18 reports tabled in 2023 compared to 53 in 2015.
8. Paul Appleby’s Critique: In the 1950s, Canadian expert Paul H. Appleby criticized the CAG’s broad scope as excessive, suggesting it oversteps into policy critique rather than just financial audit—a debate still relevant today.
9. Political Friction: State governments accuse the CAG of overreach, while the Centre is blamed for stifling it, reflecting tensions in India’s federal structure.

Link To The Original Article – https://indianexpress.com/article/upsc-current-affairs/upsc-essentials/cag-in-the-spotlight-what-are-the-issues-9891053/