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Article 151 of the Indian Constitution: Audit Reports

Part: V
Shorthand Notes: CAG Reports -> President/Gov -> Parliament/State Legislature

Article 151 of the Indian Constitution is a crucial provision that outlines the procedure for submitting the audit reports prepared by the Comptroller and Auditor-General of India (CAG). These reports are vital instruments of legislative control over the executive’s financial administration.

This article acts as a bridge, bringing the findings of the CAG’s independent audit function before the respective legislatures (Parliament and State Legislatures), thereby enabling them to hold the government accountable for its expenditure and financial management.

Original Text

151. Audit reports.

(1) 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.

(2) The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.

Detailed Explanation

Article 151 lays down the mechanism for the presentation of the Comptroller and Auditor-General’s audit reports to the legislative bodies. It separates the procedure for the Union government’s accounts from that of the State governments.

Clause (1) deals with the audit reports concerning the accounts of the Union government. It mandates that the CAG shall submit these reports directly to the President of India. The President then has a constitutional obligation to “cause them to be laid before each House of Parliament.” This means the President acts as the conduit through which the CAG’s reports reach the Lok Sabha and the Rajya Sabha. The purpose is to bring the financial performance and potential irregularities of the Union government departments and ministries under the scrutiny of the central legislature.

Clause (2) mirrors the procedure for the State governments. It requires the CAG’s audit reports relating to the accounts of a particular State to be submitted to the Governor of that State. Similar to the President at the Union level, the Governor is then constitutionally required to “cause them to be laid before the Legislature of the State.” This ensures that the State Legislature can examine the financial administration of the State government based on the CAG’s independent assessment.

The submission of these reports to the head of the executive (President/Governor) for tabling before the legislature is a fundamental aspect of parliamentary accountability. It provides the legislature with authoritative information upon which it can discuss, debate, and take necessary action regarding the financial health and management of the government.

Detailed Notes

  • Article 151 deals with the audit reports prepared by the Comptroller and Auditor-General of India (CAG).
  • It specifies the procedure for submitting these reports to the appropriate authority for legislative scrutiny.
  • The article distinguishes between reports related to the Union and those related to the States.
  • Clause (1): Union Accounts
    • CAG’s reports on the accounts of the Union government are covered here.
    • These reports must be submitted by the CAG to the President of India.
    • The President is constitutionally obligated to place these reports before each House of Parliament (Lok Sabha and Rajya Sabha).
    • This step facilitates parliamentary oversight of the Union government’s finances.
  • Clause (2): State Accounts
    • CAG’s reports on the accounts of a State government are covered here.
    • These reports must be submitted by the CAG to the Governor of the concerned State.
    • The Governor is constitutionally obligated to place these reports before the Legislature of that State.
    • This enables the State Legislature to scrutinize the financial administration of the State government.
  • The President (for Union) and Governor (for States) act as intermediaries between the CAG and the respective legislatures.
  • This process ensures that the CAG’s findings on government expenditure, revenue, and financial management are formally presented to the elected representatives.
  • The reports form the basis for examination by legislative committees, such as the Public Accounts Committee (PAC) and Committee on Public Undertakings (COPU), which play a critical role in ensuring financial accountability.

Additional Comments

  • The CAG prepares several types of reports, including audit reports on appropriation accounts, finance accounts, and public sector undertakings, all of which fall under the purview of Article 151.
  • The tabling of these reports is a formal constitutional requirement that triggers the legislative scrutiny process.
  • Parliament/State Legislature cannot directly demand reports from the CAG; they must come through the procedure laid down in Article 151.
  • The PAC, after examining the CAG’s reports and government’s responses, presents its own report to Parliament, recommending actions.
  • Article 151 underscores the independence of the CAG and the importance of legislative accountability in India’s democratic setup.

Summary

Article 151 of the Indian Constitution mandates the submission of the Comptroller and Auditor-General’s audit reports on the accounts of the Union to the President, who is required to lay them before Parliament. Similarly, it requires the CAG’s reports on the accounts of a State to be submitted to the Governor of that State, who must lay them before the State Legislature. This mechanism ensures legislative scrutiny and accountability of the executive’s financial administration based on independent audit findings.
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