Constitutional Bodies

Model Answer

Role of the Comptroller and Auditor General (CAG) in Ensuring Checks and Balances

In a democracy, preventing the misuse of power by the government is crucial, and a system of checks and balances is essential to this process. The Comptroller and Auditor General (CAG) of India, as established under Article 148 of the Indian Constitution, plays a vital role in this system. Its primary responsibility is to ensure that public funds are used efficiently, legally, and transparently, thereby holding the government accountable to the people.

The CAG conducts various types of audits to monitor government spending. These include legal and regulatory audits, where it verifies that the expenditure from public funds has been authorized by the necessary authorities and spent as per the approved budget. It also performs propriety audits to evaluate the wisdom and economy of government spending, addressing issues like wastefulness or extravagance. The performance and efficiency audits assess the effectiveness of government programs and their alignment with social and economic objectives. Importantly, CAG’s reports are laid before the Parliament and state legislatures, where they are scrutinized by the Public Accounts Committee (PAC), ensuring accountability.

Reforms to Enhance the Effectiveness of the CAG

While the CAG’s role is essential, several limitations hinder its effectiveness. The audit is conducted post-facto, based only on the documents provided, without the ability to verify the actual use of resources. This reactive approach restricts the CAG’s ability to play a more proactive role, like its counterparts in other countries such as the UK. Furthermore, the lack of a clear qualification requirement for the CAG and an opaque appointment process reduces its credibility.

To strengthen the CAG’s function, the following reforms are suggested:

1. Multi-Member Body: The CAG should be transformed into a multi-member body to handle the vast responsibilities efficiently, similar to Japan’s Audit Commission.
2. Technical Expertise: A mandatory requirement for technical expertise in auditing and financial management should be introduced for the CAG’s appointment.
3. Transparent Appointment Process: The appointment of the CAG should be made through a transparent process, perhaps by a committee like the one used for the Central Vigilance Commission (CVC).
4. Expanded Powers: The CAG should have the power to audit all government-controlled entities handling public funds, ensuring greater coverage and transparency.
5. Role as an Officer of Parliament: Designating the CAG as an officer of the Parliament would empower it to speak in Parliament, defend its reports, and enhance its influence.

Conclusion

The CAG’s role is indispensable in ensuring government accountability and transparency. Through these proposed reforms, it can be made more effective, proactive, and credible, thereby strengthening India’s democratic system.

Model Answer

Introduction

The Attorney General of India plays a vital role as the principal legal advisor to the Government of India, offering legal counsel and representing the government in significant constitutional matters. This position is enshrined in Article 76 of the Indian Constitution and carries important constitutional responsibilities.

Role of the Attorney General as Legal Advisor

1. Constitutional Foundation:
   • Article 76 of the Indian Constitution establishes the Attorney General’s office, outlining his role as the primary legal advisor to the government.
   • Example: The Attorney General’s opinion is sought while drafting and formulating key legal bills and policies, ensuring their compliance with the Constitution.
2. Legal Representation:
   • The Attorney General represents the Government of India in the Supreme Court of India, especially in cases where government actions or laws are challenged.
   • Example: In cases like the Kesavananda Bharati case, the Attorney General represents the government’s stance in constitutional challenges.
3. Advisory Role in Constitutional Matters:
   • The Attorney General offers legal advice to the President, Cabinet, and government departments on constitutional issues.
   • Example: The Attorney General often advises on the constitutional validity of executive decisions, such as emergency proclamations or new laws.
4. Drafting of Legislation:
   • Assists in drafting government bills and ordinances, ensuring they do not violate constitutional principles.
   • Example: Reviewing bills before they are introduced in Parliament, such as examining the legality of ordinances issued by the President.
5. Upholding Constitutional Principles:
   • The Attorney General ensures that the government’s actions are in compliance with constitutional provisions.
   • Example: Advising against actions that could potentially infringe on citizens’ fundamental rights or violate the separation of powers.
6. Parliamentary Involvement:
   • The Attorney General can participate in parliamentary debates and discussions but cannot vote.
   • Example: Providing legal clarifications and interpretations during parliamentary discussions on important bills.

Conclusion

The Attorney General holds a crucial role in upholding the Constitution, advising the government on legal matters, and representing it in key legal and constitutional cases. As legal challenges evolve, the Attorney General’s guidance remains vital in ensuring governance is aligned with constitutional principles.

Model Answers

The Role of the Finance Commission in Regulating Financial Relationships between the Union and States in India

The Finance Commission, established under Article 280 of the Indian Constitution, plays a crucial role in maintaining fiscal federalism in India. Its primary responsibilities include evaluating the financial state of the Union and state governments, recommending tax sharing, and determining the principles for grants-in-aid to states.

Key Functions

1. Vertical Devolution: The Commission recommends the distribution of net tax proceeds between the Union and states, ensuring an equitable allocation.
2. Horizontal Devolution: It also allocates the respective shares among the states, promoting fairness and equity.
3. Grants-in-Aid: The Commission determines the principles governing grants-in-aid from the Consolidated Fund of India to states, ensuring financial support where needed.
4. Five-Year Cycle: The recommendations are reviewed every five years, allowing for adjustments based on evolving economic conditions and state needs.
5. Legal Powers: With the authority of a civil court, the Commission can summon witnesses and demand documents, enhancing its ability to gather information.

Challenges

Despite its pivotal role, the Finance Commission faces challenges, including:

• Census Basis for Allocation: The reliance on the 2011 census for resource allocation may disadvantage states with lower population growth (Source: 15th Finance Commission report).
• Nature of Transfers: Changes in the nature of fund transfers can create instability in state finances, as seen after the 14th Finance Commission’s recommendations.
• Demand for Permanency: The need for a permanent Finance Commission is emphasized due to varying approaches to tax devolution, particularly following the implementation of GST.

In conclusion, the Finance Commission is vital for balancing financial relationships between the Union and states, ensuring equitable distribution of resources, and addressing the evolving needs of Indian federalism.