RAS question
Under Article 148 of the Indian Constitution, the Comptroller and Auditor General (CAG) is appointed by whom and what is the primary function relevant to the Fiscal Health Index?
Correct answer: (B) Appointed by the President; audits government accounts and financial performance.
Under Article 148 of the Indian Constitution, the Comptroller and Auditor General of India is appointed by the President, and its fiscal-health relevance lies in auditing government accounts and financial performance.
Explanation
Article 148 establishes the Comptroller and Auditor General of India and says the office-holder is appointed by the President by warrant under his hand and seal. The role matters for fiscal-health assessment because the CAG audits accounts connected with Union and State expenditure, including expenditure from the Consolidated Fund, the Contingency Fund and the Public Account, and also audits receipts and expenditure to check whether revenue procedures are effective. This constitutional audit function connects directly to the Fiscal Health Index: FHI 2026 uses CAG-audited data to score States on fiscal-health pillars. The appointment authority and audit function, not budget presentation or fiscal-plan approval, are the core constitutional and fiscal-governance points.
Why the other options are wrong
- (A) The Prime Minister does not appoint the CAG under Article 148, and annual budget presentation is not the CAG's audit function.
- (C) Parliament does not appoint the CAG, and the cited audit mandate concerns auditing accounts, receipts and expenditure, not approving State fiscal plans.
- (D) The Finance Commission is not the appointing authority for the CAG, and tax-devolution review is different from the CAG's constitutional audit role.
Concept
This tests constitutional accountability through independent audit, especially the CAG's position in checking executive finances. It recurs in RAS because fiscal health, State finances and constitutional bodies often overlap in governance questions.