Comptroller And Auditor General's Role In Democracy

Comptroller And Auditor General’s Role In Democracy

Source: CAG of India writes: As our democracy matures, my role is becoming more vital (The Indian Express, November 09, 2023)

Ensuring Transparency and Accountability: The Comptroller and Auditor General of India (CAG) ensures the government spends money properly. It checks that the government follows the rules set by the legislature.
Promoting Good Governance: CAG helps the government work better and saves money. It finds problems and suggests improvements.
The Importance of Citizen Engagement: People’s involvement helps CAG find where the government might not be doing things right. This makes CAG’s work more focused and effective.
Auditing in a Federal Democracy: India has many government levels, each running different programs. CAG works with all these stakeholders to audit properly.

The government now sends money directly to people. CAG checks to make sure it goes to the right people.
Citizen Engagement in Auditing

Harnessing Digital Tools: To enhance citizen engagement, utilizing digital tools is crucial. Smartphones can gather community feedback through apps. Easy-to-understand digital reports with interactive data help citizens appreciate audit findings.
Expanding Connectivity: The advent of 5G will revolutionize governance. It’s essential to integrate these advancements into audit methodologies, improving efficiency and stakeholder engagement.

Advisory and Expertise: The CAG establishes an Audit Advisory Board comprising external experts, enriching our auditing process with diverse insights.
Interactive Workshops and Surveys: We conduct stakeholder workshops and surveys among beneficiaries during audits, ensuring a participatory review process.
Transparency and Accessibility: Our commitment to transparency is shown by presenting audit reports to legislative bodies and sharing them on our website for public scrutiny.
Social Audit as a Citizen Oversight Tool: A social audit is a powerful way for citizens to monitor government programs. One such program is the National Rural Employment Guarantee Act, established by the Parliament.
National Rural Employment Guarantee Act Overview: Under this Act, village assemblies, known as Gram Sabhas, perform regular social audits on local projects. In 2011, the Ministry of Rural Development, with the C&AG office, set the social audit rules for the Mahatma Gandhi National Rural Employment Guarantee Scheme.
Establishment of Social Audit Units: These rules led to the creation of state-level social audit units. They detail the steps for carrying out social audits and responding to their findings. Social audits now cover a wider range of activities than before.

Historic Beginnings and Constitutional Changes: India’s local governance has evolved significantly. The journey began with the ancient “Janpadi and Pancha” system. The 73rd and 74th Constitutional amendments were game-changers, as they introduced new levels of self-governance under the states.
From Recommendation to Implementation: The idea developed over time. The Balwant Rai Mehta Committee’s 1958 recommendations were crucial. They suggested a three-tier structure for village self-governance, which eventually led to the constitutional amendments mentioned above.

Capacity Building: The Comptroller and Auditor General (CAG) assists in improving local government through training local fund auditors. Training includes audit planning and methods, as advised by the 11th Finance Commission.
Audit Manuals and Reports: CAG has developed numerous guidelines for local government auditing and accounting. These guidelines are essential for ensuring accountability. The Annual Technical Inspection Reports (ATIR) monitor local governance, focusing on service delivery to grassroots levels.
Addressing Accountant Shortages: To combat the shortage of qualified accountants in remote local governments, CAG, with the Institute of Chartered Accountants of India, is launching online courses. These courses aim to create a pool of skilled accountants for urban and rural areas.
Course Enrollment and Goals: Enrollment for the online courses starts on November 16, 2023. The courses are set to be affordable, with educational requirements tailored to attract participants, creating a group of accountants available for local governments at a reasonable cost.