QUE : “The Comptroller and Auditor General (CAG) of India is the guardian of the public purse and ensures financial accountability of the Executive to the Legislature. In this context, explain the constitutional provisions regarding the appointment, tenure, and removal of the CAG under Article 148. How does the ‘audit of expenditure’ differ from the ‘audit of receipts’ in ensuring fiscal discipline?”

ANSWER

1. Introduction

Article 148 establishes the Comptroller and Auditor General (CAG) as an independent constitutional authority to audit government accounts. Dr. B.R. Ambedkar termed the CAG the “most important officer under the Constitution,” ensuring that the Executive remains financially accountable to Parliament and State Legislatures.

2. Body

Constitutional Safeguards for Independence (Article 148)

• Appointment: Appointed by the President by warrant under his hand and seal (Art. 148(1)).

• Tenure: Holds office for a term of 6 years or up to the age of 65 years, whichever is earlier.

• Removal: Can be removed only on grounds of proved misbehaviour or incapacity through a process identical to a Supreme Court Judge (impeachment by special majority in both Houses of Parliament).

• Conditions of Service: Salary and service conditions are charged on the Consolidated Fund of India (non-votable) and cannot be varied to his disadvantage after appointment (Art. 148(3), (5)).

• Post-Retirement Bar: Ineligible for any further office under the Government of India or any State (Art. 148(4)), preventing quid pro quo.

Audit of Expenditure vs. Audit of Receipts

Audit of Expenditure

• Focus: Verifies whether money spent was authorized, sanctioned, and incurred for the intended purpose with due propriety.

• Scope: Checks compliance with financial rules, sanctions, and canons of financial propriety (wisdom, faithfulness, economy).

• Outcome: Prevents misappropriation, waste, and irregular payments (e.g., ghost beneficiaries).

Audit of Receipts

• Focus: Ensures all revenue due to the government (tax/non-tax) is assessed, collected, and credited promptly.

• Scope: Detects leakage, under-assessment, evasion, and delays in realization of revenue.

• Outcome: Maximizes resource mobilization; protects the revenue base for welfare spending.

3. Conclusion

The CAG’s structural independence—security of tenure, financial autonomy, and post-retirement restrictions—is vital for credible audits. While expenditure audit enforces rule-based spending, receipt audit ensures revenue integrity. Together, they operationalize Article 110/202 (Annual Financial Statements), forming the bedrock of fiscal federalism and the Viksit Bharat@2047 goal of transparent governance.