School of Law Mitali Srivastava 2023 24 Historical background of CAG

Summary

This video explores the origins and evolution of the Controller and Auditor General (CAG) system in India, tracing its roots back to the British colonial period when it was established in 1860. Initially focused on auditing government accounts, the CAG's role expanded significantly over time, adapting to modern governance needs. Key legislative milestones, including the Government of India Act of 1935 and the Indian Constitution's provisions on the CAG, reinforced its independence and responsibilities. The video emphasizes the CAG's crucial role in ensuring financial accountability and effective governance in India from the colonial era to the present day.

Takeaways

• 📚 The video discusses the fundamentals of Public Finance in India, focusing on the origins and evolution of the Controller and Auditor General (CAG) system.
• 🇬🇧 The CAG system in India was established in 1860, inspired by the British system, to ensure financial accountability in British India.
• 🔍 Initially, the CAG's functions were limited to auditing the accounts of the British Indian government, focusing on expenditures related to public works and revenue collection.
• ⚖️ The CAG operates as an independent constitutional authority, separate from the executive branch of government.
• 📈 Over time, the responsibilities of the CAG expanded to include performance audits that assess the efficiency and effectiveness of government programs.
• 📜 The CAG's role was formalized in 1866 with the passage of the Audit Departments Act, establishing accountability to Parliament.
• 📊 The CAG submits audit reports known as appropriation accounts to the House of Commons, detailing findings of audits and any financial irregularities.
• 🖥️ Modernization in recent decades has seen the CAG adopt advanced auditing techniques and data analytics to enhance the audit process.
• 🏛️ Following India's independence in 1947, the role of the CAG was reevaluated to align with democratic principles, culminating in its incorporation into the Indian Constitution.
• 📅 Articles 148 to 151 of the Indian Constitution outline the CAG's appointment, duties, powers, and reporting mechanisms, emphasizing financial accountability and parliamentary oversight.

Q & A

What are the main topics covered in the video regarding the CAG in India?

The video discusses the origins of the Controller and Auditor General (CAG) system in India, its British colonial influences, and its evolution in both pre-independent and post-independent India.

When was the office of the Controller and Auditor General established in India?

The office of the Controller and Auditor General was established in India in 1860.

What was the primary objective of establishing the CAG office during the British colonial period?

The primary objective was to introduce a mechanism to ensure financial accountability in the administration of British India.

How did the functions of the CAG evolve over time?

Initially, the CAG focused on auditing government accounts and expenditures, but its responsibilities expanded to include performance audits and assessments of the efficiency and effectiveness of government programs.

What legislation institutionalized the role of the CAG in the British constitutional framework?

The S Cheer and Audit Departments Act of 1866 established the CAG as an independent officer accountable directly to Parliament.

What is the significance of the Constitutional provisions related to the CAG in India?

The Constitutional provisions, particularly Articles 148 to 151, outline the appointment, duties, and powers of the CAG, ensuring its independence and accountability in auditing public accounts.

What changes occurred in the CAG's role after India's independence in 1947?

Post-independence, there was a re-evaluation of the CAG's role to align with democratic principles, emphasizing financial accountability and parliamentary oversight.

What are some key articles in the Indian Constitution related to the CAG?

Article 148 establishes the office of the CAG, Article 149 outlines its duties and powers, Article 150 deals with the form of accounts, and Article 151 discusses the submission of audit reports.

What impact did the British CAG system have on the Indian CAG?

The British CAG system significantly influenced the structure and functioning of the CAG in India, shaping its independence and operational framework.

How has technology influenced the auditing process of the CAG in recent decades?

The CAG has modernized its auditing techniques by incorporating advanced information systems and data analytics to adapt to changing governance landscapes.