Who is Called the Watchdog of Public Finance?

By BYJU'S Exam Prep

Updated on: November 9th, 2023

The Watchdog of Public Finance is the Comptroller and Auditor General (CAG) of India. It’s their responsibility to guarantee the Parliament’s and the Executive’s accountability. Recently, CAG has come under fire for having an outreach-focused mandate rather than a more expansive one. The CAG’s role is to defend the Constitution from capricious vested interests of the government and the Executive, much like the judiciary does.

Watchdog of Public Finance

The Comptroller and Auditor General (CAG) acts as the watchdog of the public purse. The CAG operates as an independent authority, as stated by the Constitution of India. The institution is considered the bulwark of the democratic system in the government.

They are in charge of overseeing the entire nation’s financial system and working on both the federal and state levels of our democracy. Hence, CAG is one of the pillars of the Indian democratic system.

  • The CAG is the authorized head of the Indian economy’s audit and accounting department.
  • This institution also serves as the Chief Guardian of the public purse.
  • The institution holds both the federal and state governments accountable for how public funds are spent.
  • This role and institution, like many others in our country, was established by the British government.
  • In 1858, the Office of the Accountant General was established.
  • Following the revolt of 1857, the British crown annexed the administrative powers of the East Indian Company.
  • In 1860, Sir Edward Drummond was appointed as the first Auditor General.

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