Book Review: Steeling CAG to Strengthen Functional Democracy
CAG Ensuring Accountability Amidst Controversies An Inside View (Image credit White Falcon Publishing)
CAG: Ensuring Accountability Amidst Controversies Offers Ringside Views of Top Auditor
By R Narayanan
New Delhi, March 4: I have been teaching Constitution of India and the Government rules for more than four decades now. A couple of thousands of my students are working in various posts in the Government.
In my classes, when I start the chapter on CAG, I start with B. R. Ambedkar’s quote: “Personally speaking for myself, I am of opinion that this dignitary of officer is probably the most important officer in the Constitution of India. He is the one man who is going to see that the expenses voted by Parliament are not exceeded or varied from what has been laid down by Parliament in what is called the Appropriation Act. If this functionary is to carry out the cuties-and his duties, I submit, are far more important than the duties even of the judiciary appointment of officers and servants of the Supreme Court.”
That is CAG. But how much do we, as citizens or even as officers, really understand about its functioning and its impact? I have worked closely with Public Accounts Committee of the Lok Sabha for half a decade and associated with Parliament and its committees for more than three decades.
I have read a number of CAG reports threadbare and reviewed them officially and engaged with CAG officers and Members of Parliament. Even a number of Parliamentarians are not aware about this institution.
Not much is written about it. This book – ‘CAG Ensuring Accountability Amidst Controversies: An Inside View’, authored by P. Sesh Kumar and published by White Falcon Publishing — is trying to fill that vacuum. As this comes from a practitioner having a lived experience of having worked in that office, this is more real than what we read about CAG. It is an added bonus.
Unfortunately, when we think of CAG reports, we tend to speak about some of the so-stated biggest financial controversies —the 2G spectrum case, coal block allocations, and presumptive losses. This book lays out the facts, the numbers, and the logic behind these audits.
The book has a detailed analysis of cases such as the 2G spectrum and coal block allocations, written in less ‘political’ and ‘sensational’ way, and more towards demystifying audit methods, particularly in quantifying losses and assessing the relevant policy decisions.
It is a clinical and yet an even-handed critique. It explains the valuation dilemmas, outdated regulatory frameworks, and misinterpretations of audit reports, which together cause political and media-driven distortions.
The book highlights the importance of nuanced auditing practices in ensuring financial transparency and preventing mismanagement. The book goes beyond technical evaluations.
It also reflects on CAG’s declining public influence. Or rather, it builds a picture of how staying relevant in the current governance landscape is going to be a challenge for this institution.
If we remember, CAG was presented as unitary aspects of the constitution, which has federalism as one of its salient features. CAG was a blend of unitary spirit in a federal structure. That was necessary 75 years ago.
Today, when the tendencies of the governance are of centralizing nature; federalism is increasingly becoming irrelevant even in taxation, such as deciding GST rates. GST council, although termed as cooperative federalism, has diluted the role of not only State Governments, but also the Parliament.
Remember, we all used to wait for budget speeches to know the tax rates on different commodities. We also used to have an independent formal print and television media, which of course used to sensationalize, but was a friend of any watchdog institution.
We never had a Chief Justice before, who had to look and believe in anything other than the Constitution, even God for delivering judgements! The current governance landscape is changing rapidly- beyond not only spirit of the Constitution but also its explicit provisions.
Do we want CAG to be an institution that flows with this wind and stays relevant as an instrument in the hands of current governance landscape; or do we want CAG to fly like a kite against the wind of centralizing tendencies and stay relevant to protect and safeguard the values of the constitution — federalism, freedom of expression and Parliamentary democracy?
This, the time will decide; people will decide. They often do not get what they want; they get what they deserve. If they cease to be thinking and rational, they will get an institution that is not a watchdog but an efficient but a tamed institution of whatever is the ruling ideology. Time is the best judge.
There are certain grey areas in the Constitution itself. Constitution visualizes that the CAG should be “Comptroller” as well as “Auditor General” but in practice he functions only as an Auditor General and not Comptroller.
He has no control over issue of money. He comes into the picture only after expenditure that is after damage has been done.
CAG is appointed by the President, meaning by Prime Minister (and Council of Ministers). There is no plural executive in the process of the appointment. Judges are appointed on the recommendation of collegium. Central Information Commissioner/ Information Commissioners also by plural bodies, Chairman and Members of NHRC, Director CBI, Chief Vigilance Commissioner and even Director Enforcement are through selection. Why the executive or legislature or even judiciary did not think of selecting CAG through a plural body.
There is no transparency in choosing the reports or the subjects for audit by CAG. Other than the officers of CAG, no institution knows about it neither the basis of selection of subjects. It is purely their own discretion.
Is there any restriction for CAG that he should audit only one-year-old or two-year-old reports? Normally very old reports are chosen for audit.
Except those reports which are highlighted by media or highlighted by PAC, no other reports come to light of the day.
CAG audits on behalf of Parliament. Let us make a survey that how many members of Lok Sabha and Rajya Sabha are aware of the institution of the CAG, their role, their powers, their selection process, and the weaknesses.
Is there any dedicated time in Parliament proceedings for discussing about the CAG reports, how many paras of CAG have been implemented by the Executive? This is only a ritual, and CAG has no teeth at all, doing only postmortem.
Irrespective, the minimum what we need to do is to help students, youth and citizens to be thinking people rational. This book does that by being thought provocative.
This book is not a dry literature on CAG, but an engaging, insightful, and well-researched one on Audit in practice, and CAG in action. This book is a must-read for all students, officials, teachers and researchers.
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