Constitutional Bodies Flashcards
Introduction
Any body created under the provisions of the Indian constitution
Bodies:
Election Commission (article 324)
UPSC (article 315-323)
Finance commission (article 280)
CAG (article 145-151)
Power is directed from constitution
We can amend and make new constitutional bodies as well (article 368 for amendments)
Finance commission
It is a constitutional body
Article 280 provides for a financial commission as a quasi judicial body
It is constituted by president
Every 5th year
Earlier time as he considered necessary
Composition:
Appointed by president
Holds office - period as specified by president
Eligible for reappointment
Members: 1 president + 4 other members
Qualifications
Parliament has specified the qualifications of chairman and members of the finance commission
Chairman should be a person having experience in public affairs
The four other members should be selected among the following:
A judge of high court or one qualified to be appointed as one
A person who has specialised knowledge of finance and accounts of government
A person who has wide experience in financial matters and in administration
A person who has special knowledge of economics
Functions of finance commission
Make recommendations to the president of India on the following matters:
Distribution of taxes to be shared between centre and States
The principles that should govern the grands in aid to the states by the centre (out of consolidated fund of India)
Measures needed to augment consolidated fund of state to supplement resources of panchayats and municipalities in state on the basis of recommendations made by the state finance commission
Any other matter referred to it by the president in interests of sound finance
Commission summits its report to the president. He lays it before both houses of the Parliament. It is nowhere laid down in the constitution that the recommendations of the commission shall be binding upon the Government of India
Impact of planning Commission or niti aayog
Finance commission is the balancing wheel of fiscal federalism in India
Role in the centre state fiscal relations has been undermined by the emergence of the planning commission (now niti aayog)
In article 275, grant in aid revenues of states is not confined to revenue expenditure only
While the principles governing the distribution of the plan grants will be set out by the FC
The application of these principles from year to year will be left to the niti aayog and the government
15th finance commission:
Most recent was constituted into 2017
Shared by NK Singh, the former governor of RBI from period 2020-25
Election Commission
It is a constitutional body
Permanent and independent body
Free and fair elections
Article 324 of constitution
Functions: superintendence, direction and control
Conducting election for: parliament, state legislature, president and vice president
All India body
It is common for both Central and state governments
Not concerned with panchayat and municipal elections in states
Constitution of India provides for a separate state election commission for local bodies
Composition:
Chief election commissioner and such members of other election commissions are appointed by the president from time to time
When any other election commissioner is appointed so, the chief election commissioner shall act as the chairman of the election commission
President may also appoint after consultation with the election commission
Conditions of service and tenure of office of the election commissioners and the regional commissioners shall be determined by the president
Comptroller and auditor general
Article 148: CAG of India
Article 149: duties and powers of CAG
Article 150: form of accounts of the union and States
Article 151: audit reports
Independence office of CAG in India
It is the head of Indian audit and accounts department: guardian of public purse and control of entire financial system of country at both centre and state levels
Duty to uphold constitution and law of parliament in the field of financial administration
This is the reason why Dr B.R Ambedkar said that the CAG is an important office under the constitution of India
Appointment of CAG:
Oath and affirmation by president, to be a true faith and allegiance to the constitution. To uphold the sovereignty and integrity. To duty and faithfully and to the best of his ability, knowledge, judgement perform the duties of his office without fear or favour, affection or ill will to uphold the constitution and law
Holds office for a period of 6 years or up to the age of 65
Can resign anytime through the president
Can also be removed by the president on the grounds similar to that of a judge of supreme Court
On the basis of a resolution passed to that effect by both the houses of the Parliament with special majority either on the grounds of proven misbehaviour or incapacity
Independence of CAG
Security of tenure: 6 years or 65 years (which ever is earlier)
Not eligible for further office (either under Government of India or any state government)
Salary and other service conditions are determined by the Parliament
His salary is equal to that of a judge of supreme Court
Neither his salary nor his rights in respect of leave of absence, pension or age of retirement can be altered to his disadvantage after his appointment
Conditions of service of person serving in Indian audit and accounts department and the administrative powers of CAG are prescribed by the president after consultation with the CAG
Administrative expenses of the office of CAG, including all the salaries, allowances and pensions are to be charged from the consolidated fund of India
No minister can represent CAG in Parliament at both houses
No minister can be called upon to take any responsibilities for any actions done by him
Duties and powers of CAG
Article 149 authorizes Parliament to prescribe duties and powers of CAG
Parliament enacted CAG’s (duties, powers and conditions of service) act of 1971
Accounts from audit in central government
Act was amended in 1976 to separate audits of the accounts related to all expenditure from the consolidated fund of India, consolidated fund of each state, and consolidated fund of each union territory having a legislative assembly
He audit all expenditure from:
The contingency form of India and States,
Public account of India and states
Any department of Central and state government
Audit receipts and expenditure of centre and each state
Audits the accounts of any other authority when requested by the president or governor
For example the audit of local bodies, like village panchayats
Article 150 advises the president with regard to prescription of the form in which the accounts of the centre and states shall be kept
CAG submit three audit reports to the president: audit report on appropriation accounts, audit reports on finance accounts and audit report on public undertaking
President lays these reports before both houses of the Parliament (duties, powers and conditions of service) act of 1971
After this, the public account committee examines so he is responsible only to the parliament.
CAG is an agent of the Parliament and conducts audits of expenditure on behalf of the Parliament
CAG has no control over the issue of money from consolidated fund of India and States. Many departments are authorised to draw money by issuing checks without specific authority from the CAG. It is only concerned at the audit stage when the expenditure has already taken place.
CAG of India differs from the CAG of Britain: British CAG: has powers of both comptroller and auditor general. In other words, executive can draw money from public exchequer only with approval of CAG
CAG and corporations
Role of CAG in auditing of public corporations is limited
Three categories:
Some corporations are audited totally and directly by the CAG. For example, Damodar valley corporation, ONGC, etc.
Some corporations are audited by private professional auditors who are appointed by the central government in consultation with CAG. For example, Central warehousing corporation, industrial finance corporation, etc
Some other corporations are totally subjected to private audit done exclusively by private professional auditors and the CAG does not come into the picture at all. The summit their annual reports of accounts directly to the parliament. For example, LIC of India, RBI, SBI, FCI, etc.
The role of CAG in the auditing of Government companies is also limited
They are audited by private auditors who are appointed by the government on the advice of CAG
CAG can also under takes supplementary audit or test audit of such companies
In 1968, the audit board was established as a part of the office of CAG to associate outside specialists and experts to handle technical aspects of audit of specialised enterprises like engineering, iron and steel, chemicals etc
The board was established on the recommendation of administrative reforms Commission of India
It consists of a chairman and two members appointed by the CAG
Criticism of CAG
By Paul H Appleby in his 2 reports on the Indian administration function of CAG in India, in large measure is an inheritance from colonial rule.
He recommended the abolition of the office of CAG
Auditing has a repressive and negative influence
CAG’s function is not really a very important one
Deputy secretary in the department knows more about the problem in his departments than the CAG and his entire staff
