The Constitution of India (Article 148) provides for an independent office of the Comptroller and Auditor General of India (CAG). In 1971, the central government enacted the Comptroller and Auditor General of India (Duties, Powers, and Conditions of Service) Act, 1971. Articles 148 – 151 of the Constitution of India deal with the institution of the CAG of India.
He is the head of the Indian Audit and Accounts Department and chief Guardian of Public purse.
The CAG is appointed by the President of India by a warrant under his hand and seal.
He holds office for a period of six years or up to the age of 65years, whichever is earlier.
He can resign any time from his office by addressing the resignation letter to the president. He can also be removed by the president on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehaviour or incapacity.
CAG audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT having a legislative assembly.
CAG audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
CAG audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
CAG audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.
He acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
The CAG is also the statutory auditor of Government-owned corporations and conducts supplementary audit of government companies in which the Government has an equity share of at least 51 percent or subsidiary companies of existing government companies.
The reports of the CAG are laid before the Parliament/Legislatures and are being taken up for discussion by the Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs), which are special committees in the Parliament of India and the state legislatures.
The CAG is ranked 9th and enjoys the same status as a sitting judge of Supreme Court of India in order of precedence.
G. C. Murmu is the current CAG of India. He assumed office on 8 August 2020. He is the 14th CAG of India.
Restored the original term of the Lok Sabha and the state legislative assemblies.
Restored the provisions with regard to the quorum in the Parliament and state legislatures.
Omitted the reference to the British House of Commons in the provisions pertaining to parliamentary privileges.
Gave constitutional protection to publication in a newspaper of true reports of the proceedings of the Parliament and the state legislatures.
Empowered the president to send back once the advice of the cabinet for reconsideration. But, the reconsidered advice is to be binding on the president.
Deleted the provision which made the satisfaction of the president, governor, and administrators final in issuing ordinances.
Restored some of the powers of the Supreme Court and high courts.
Replaced the term ‘internal disturbance’ by ‘armed rebellion’ in respect of national emergency.
Made the President declare a national emergency only on the written recommendation of the cabinet.
Made certain procedural safeguards with respect to a national emergency and President’s rule.
Deleted the right to property from the list of Fundamental Rights and made it only a legal right.
Provided that the fundamental rights guaranteed by Articles 20 and 21 cannot be suspended during a national emergency.
Omitted the provisions which took away the power of the court to decide the election disputes of the president, the vice-president, the prime minister and the Speaker of the Lok Sabha.
A state of emergency in India can be proclaimed by the President of India during certain crisis situations. Under the advice of the cabinet of ministers, the President can overrule many provisions of the Constitution, which guarantees Fundamental Rights to the citizens of India.
Articles 352 to 360 in Part XVIII of the Constitution of India deals with the emergency provisions. These are given to deal with exceptional circumstances like war or rebellion and to safeguard the sovereignty, unity, integrity and security of the country, the democratic political system and the Constitution.
The emergency provisions are influenced by the German constitution. These provisions turns India’s federal structure into a more unitary one.
Emergency provisions in Indian Constitution
A state of emergency is a period of governance that can be proclaimed by the President of India during certain crisis situations.
The emergency provisions are contained in Part XVIII of the Constitution of India, from Article 352 to 360.
The rationality behind the incorporation is to safeguard the sovereignty, unity, integrity and security of the country, the democratic political system and the Constitution.
The Constitution stipulates three types of emergencies-
National Emergency
Constitutional Emergency
Financial Emergency
National emergency
Under Article 352, the president can declare a national emergency when the security of India or a part of it is threatened by war or external aggression or armed rebellion.
The President can declare a national emergency even before the actual occurrence of war or armed rebellion or external aggression
When a national emergency is declared on the grounds of ‘war’ or ‘external aggression’, it is known as ‘External Emergency’. Whereas when it is declared on the grounds of ‘armed rebellion’, it is known as ‘Internal Emergency’. This term ‘armed rebellion’ is inserted from the 44th amendment, by replacing ‘internal disturbance’.
The proclamation of emergency must be approved by both the houses of parliament within one month from the date of its issue.
Parliamentary approval
The proclamation of emergency must be approved by both the houses of parliament within one month from the date of its issue. However, if the proclamation of emergency is issued at a time when the Lok Sabha has been dissolved or the dissolution takes place during the period of one month without approving the proclamation, then the proclamation survives until 30 days from the first sitting of Lok Sabha after its reconstitution, provided the Rajya Sabha has in the meantime approved it.
If approved by both the houses, the Emergency continues for 6 months and can be extended to an indefinite period with an approval of the Parliament for every six months.
Revocation of proclamation
A proclamation of Emergency may be revoked by the President at any time by a subsequent proclamation. Such proclamation does not require parliamentary approval.
The emergency must be revoked if the Lok Sabha passes a resolution by a simple majority disapproving its continuation.
Effects on the centre-state relations
While a proclamation of Emergency is in force, the normal fabric of the Centre-State relations undergoes a basic change. this can be studied under three heads: Executive: Centre becomes entitled to give executive directions to a state on ‘any’ matter
Legislative: The parliament becomes empowered to make laws on any subject mentioned in the state list, the president can issue ordinances on State subjects also, if the parliament is not in session.
Financial: the president can modify the constitutional distribution of revenues between the centre and the states.
Effect on the life of the Lok Sabha and State Assembly
While a proclamation of National Emergency is in operation, the life of the Lok Sabha may be extended beyond the normal term for one year at a time. However, this extension cannot continue beyond a period of six months after the emergency has ceased to operate.
Similarly, the Parliament may extend the normal tenure of a state Legislative Assembly by one year each time during a national emergency, subject to a maximum period of six months after the emergency has ceased to operate.
Effect on fundamental rights
Suspension of Fundamental rights under Article 19: According to Article 358, when a proclamation of National Emergency is made, the six fundamental rights under article 19 are automatically suspended.
The 44th Amendment Act laid out that Article 19 can only be suspended when the National Emergency is laid on the grounds of war or external aggression and not in the case of armed rebellion.
Suspension of other Fundamental Rights: Under Article 359, the President is authorised to suspend, by order, the right to move any court for the enforcement of Fundamental Rights during a National Emergency. Thus, remedial measures are suspended and not the Fundamental Rights.
The 44 Amendment Act mandates that the President cannot suspend the right to move the court for the enforcement of Fundamental Rights guaranteed by Article 20 and 21.
This type of emergency has been proclaimed three times so far.
The first proclamation of National Emergency was issued in October 1962 on account of Chinese aggression in the North-East Frontier Agency (Union Territory of Arunachal Pradesh and some parts of Assam)
The second proclamation of National Emergency was made in December 1971 during the attack by Pakistan.
The third proclamation of National Emergency was made in June 1975.
Constitutional Emergency OR President’s Rule
Article 355 imposes a duty on the centre to ensure that the government of every state is carried on in accordance with the provisions of the constitution. The Centre takes over the government of a state under Article 356 in case of failure of constitutional machinery in a state.
The president’s ruler can be proclaimed under Article 356 on two grounds
Article 356 empowers the President of India to issue a proclamation if he is satisfied that a situation has arisen in which the government of a state cannot be carried on in accordance with the provisions of the constitution.
Article 365 says that whenever a state fails to comply with or to give effect to any direction from the centre, it will be lawful for the President to hold that a situation has arisen in which the government of the state cannot be carried on in accordance with the provisions of the constitution.
Parliamentary approval
A proclamation imposing president’s rule must be approved by both the houses of parliament within two months from the date of its issue. However, if the proclamation of President’s rule is issued at a time when the Lok Sabha has been dissolved or the dissolution of the Lok Sabha takes place during the period of two months without approving the proclamation, then the proclamation survives until 30 days from the first sitting of the Lok Sabha after its reconstitution, provided that the Rajya Sabha approves it in the meantime.
Effects of President’s rule
The President acquires various extraordinary powers when the President’s rule is imposed in a state.
He can take up the functions of the state government and powers vested in the governor or any other executive authority in the state.
He can declare that the powers of the state legislature are to be exercised by the parliament.
He can take all other necessary steps including the suspension of the constitutional provisions relating to any body or authority in the state.
Judicial review
The 38th Amendment act of 1975 made the satisfaction of the President in invoking Article 356final and conclusive which would not be challenged in any court on any ground. This provision was deleted by the 44th Amendment Act of 1978 implying that the satisfaction of the President is not beyond judicial review.
Financial Emergency
Article 360 empowers the president to proclaim a Financial Emergency if he is satisfied that a situation has arisen due to which the financial stability or credit of India or any part of its territory is threatened.
Parliamentary approval
A proclamation declaring financial emergency must be approved by both the Houses of Parliamentwithin two months from the date of its issue. However, if the proclamation of Financial Emergency is issued at a time when the Lok Sabha has been dissolved or the dissolution of the Lok Sabha takes place during the period of two months without approving the proclamation, then the proclamation survives until 30 days from the first sitting of the Lok Sabha after its reconstitution, provided the Rajya Sabha has in the meantime approved it.
Once approved by both the houses, the Financial Emergency continues indefinitely till it is revoked.
Effects of Financial Emergency
Extension of the executive authority of the Union over the financial matters of the States.
Reservation of all money bills or other financial bills for the consideration of the President after they are passed by the legislature of the State.
Reduction of salaries and allowances of all or any class of persons serving in the State.
Direction from the President for the reduction of salaries and allowances of all or any class of persons serving the Union; and the judges of the Supreme Court and the High Courts.
Financial emergency has not been imposed in India yet.
