GS- 2nd Paper
Topic- Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.
Comptroller and Auditor General of India (CAG)
Context
PM addresses Conclave of Accountants General and Deputy Accountants General
About
- Prime Minister addressed Conclave of Accountants General and Deputy Accountants General in Delhi.
- CAG played a great role in the developing of a time bound and outcome based system of working in the country.
About the CAG
- Comptroller and Auditor General of India (CAG) is an independent authority under the Constitution of India.
- He is the head of the Indian Audit & Account Department.
- He is the guardian of the public purse and controls the entire financial system of the country at both the levels- the center and state.
- His duty is to uphold the Constitution of India and the laws of Parliament in the field of financial administration.
- In 1976, he was relieved of his responsibilities with regard to the compilation and maintenance of accounts of the Central government due to separation of accounts from audit.
Constitutional Provisions
- Article 148– broadly deals with the CAG appointment, oath and conditions of service.
- Article 149- deals with Duties and Powers of the Comptroller and Auditor-General of India.
- Article 150- says that the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
- Article 151– says that the reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.
- Article 279– Calculation of “net proceeds” is ascertained and certified by the Comptroller and Auditor-General of India, whose certificate is final.
- Third Schedule– Section IV of the Third Schedule of the Constitution prescribes the form of oath or affirmation to be made by the Judges of the Supreme Court and the Comptroller and Auditor-General of India at the time of assumption of office.
- Sixth Schedule– the accounts of the District Council or Regional Council should be kept in such form as CAG, with the approval of the President, prescribes.
- In addition these bodies account are audited in such manner as CAG may think fit, and the reports relating to such accounts shall be submitted to the Governor who shall cause them to be laid before the Council.
Functions and Powers of the CAG
CAG derives its audit mandate from different sources-
- Constitution– Articles 148 to 151 of the Constitution. Article 149 stipulates the Duties and Powers of the Comptroller and Auditor General
- Statute– the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, i.e. DPC Act, 1971.
- Regulations– Regulations on Audit and accounts as framed and notified in the official Gazette. Regulations on Audit & Accounts-2007
- Scope of audit– Within the audit mandate, the Comptroller and Auditor General is the sole authority to decide the scope and extent of audit to be conducted by him or on his behalf.
Functions
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.
- 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.
- 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.
- 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.
- The accounts of any other authority when requested by the President or Governor e.g. Local bodies.
Duties of CAG
- CAG advises the President with regard to prescription of the form in which the accounts of the Centre and states shall be kept.
- CAG submits his audit reports relating to the accounts of the Centre to the President, who shall, in turn, place them before both the houses of Parliament.
- CAG submits 3 audit reports to the President–
- Audit report on appropriation accounts,
- Audit report on finance accounts
- Audit report on public undertakings.
- CAG submits his audit reports relating to the accounts of a State to the Governor, who shall, in turn, place them before the state legislature.
- CAG ascertains and certifies the net proceeds of any tax or duty and his certificate is final on the matter.
- CAG acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.
- He compiles and maintains the accounts of state governments.
Independence of CAG
For effective functioning of this important institution of the CAG it is paramount to ensure independence. There are several provisions enshrined in the Constitution to safeguard CAG’s independence.
- CAG is appointed by the President by warrant under his hand and seal and provided with tenure of 6 years or 65 years of age, whichever is earlier.
- CAG is provided with a security of tenure and can be removed by the President only in accordance with the procedure mentioned in the Constitution that is the manner same as removal of a Supreme Court Judge.
- He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.
- His salary and other service conditions though determined by the Parliament cannot be varied to his disadvantage after appointment.
- His administrative powers and the conditions of service of persons serving in the Indian Audit and Accounts Department shall be prescribed by the President only after consulting him.
- The administrative expenses of the office of CAG, including all salaries, allowances and pensions are charged upon the Consolidated Fund of India that is not subject to vote.
Indian CAG Vs Britain CAG
- CAG of India only performed the role of an Auditor General and not of a Comptroller but in Britain it has the power of both Comptroller as well as Auditor General.
- In India the CAG audits the accounts after the expenditure is committed i.e. ex post facto.
- In UK no money can be drawn from the public exchequer without the approval of the CAG.
- In India, CAG is not a member of the parliament while in Britain; CAG is a member of house of the Commons.
GS- 2nd Paper
Topic– Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Intensified Mission Indradhanush (IMI) 2.0
Context
Union Minister of Health and Family Welfare reviewed the preparedness within States for roll out of Intensified Mission Indradhanush (IMI) 2.0 in States.
About IMI 2.0
- ‘Intensified Mission Indradhanush 2.0‘ was launched on October 31, 2019.
- 0 is to ensure that not a single child in the country misses out on vaccination, and have a special focus on improving coverage in areas with “low” immunisation.
- Through ‘IMI 2.0’, the health ministry aims to reach each and every child below the age of two years and all pregnant women still uncovered/partially covered in 271 districts of the country .
- The IMI programme is supported by 12 ministries and departments and is being monitored by the cabinet secretary at the national level.
The salient features of IMI 2.0 are-
- Immunization activity will be in four rounds over 7 working days excluding the RI days, Sundays and holidays.
- Enhanced immunization session with flexible timing, mobile session and mobilization by other departments.
- Enhanced focus on left outs, dropouts, and resistant families and hard to reach areas.
- Focus on urban, underserved population and tribal areas.
- Inter-ministerial and inter-departmental coordination.
- Enhance political, administrative and financial commitment, through advocacy.
- Intensified Mission Indradhanush immunization drive, consisting of 4 rounds of immunization will be conducted in the selected districts and urban cities between Dec 2019 – March 2020.
Mission Indradhanush
- ‘Mission Indradhanush’ was launched by the Government of India in Decmber 2014.
- It was aimed to strengthen and re-energize the programme and achieve full immunization coverage for all children and pregnant women.
- The ultimate goal of Mission Indradhanush is to ensure full immunization with all available vaccines for children up to two years of age and pregnant women.
GS- 2nd Paper
Topic- Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.
Credit Guarantee Fund
Context
National Credit Guarantee Trustee Company Ltd. has been set up by the Department of Financial Services, Ministry of Finance.
About Credit Guarantee Fund Scheme
- The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India (GoI) to make available collateral-free credit to the micro and small enterprise sector.
- Both the existing and the new enterprises are eligible to be covered under the scheme.
- The Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.
Scheme Benefits & Highlights
- Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to Rs 2 crore per eligible borrower are covered under the guarantee scheme provided they are extended on the project viability without collateral security or third party guarantee.
- The extent of guarantee cover is 85% for micro enterprises for credit up to Rs 5 lakh.
- The extent of guarantee cover is 50% of the sanctioned amount of the credit facility for credit from Rs 10 lakh to Rs 100 lakh per MSE borrower for retail trade activity.
- The extent of guarantee cover is 80%
- Micro and Small Enterprises operated and/or owned by women; and
- all credits/loans in the North East Region (NER) for credit facilities upto Rs 50 lakh.
- In case of default, Trust settles the claim up to 75% of the amount in default of the credit facility extended by the lending institution for credit facilities upto Rs 2 crore.
