Comptroller and Auditor General of India

Contents
I. Introduction
II. Comptroller and Auditor General
III. Appointment and Tenure
IV. Independence of the CAG
V. Duties and Powers
VI. Other Duties of CAG
VII. Report by CAG
VIII. Role of Comptroller and Auditor General
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I. Introduction
In accordance with Article 148 of the Indian Constitution, the Comptroller and Auditor
General of India is an independent body. He oversees the Indian Audit and Accounts
department. He oversees the whole financial system of the nation at both the federal and
state levels as the keeper of the public purse. Along with the Supreme Court, the Election
Commission, and the Union Public Service Commission, the CAG is one of the pillars of
India’s democratic system of government.

II. Comptroller and Auditor General

The Comptroller and Auditor General of India (CAG) is an independent position
established by Article 148 of the Indian Constitution. The Comptroller and Auditor
General of India is chosen by the President of India by a warrant bearing his signature. He
is one of the cornerstones of India’s democratic governmental structure and the head of the
Indian Audit and Accounts Department.
The Comptroller and Auditor General is in charge of overseeing the whole federal and
state financial systems of the nation as well as the public purse. He is accountable for
upholding the Indian Constitution and parliamentary finance management laws.

III. Appointment and Tenure

 President appoints the CAG under his hand and seal
 CAG takes oath before the President
 CAG holds office for the period of 6 years or 65 years of age
  CAG resigns before the President
 He is removed by President on same ground and manner as of the SC judges on
ground of proved misbehavior or incapacity.

IV. Independence of the CAG

 He is provided with security of tenure and cannot be removed by president only
 CAG is not eligible of further office
 His salary and allowance cannot be put into to his disadvantage and is charged in
consolidated fund of India hence is not subject to vote.
 CAG can not represent any minister in either of the house.

V. Duties and Powers

According to Article 149 of the Constitution, the Parliament may specify the
responsibilities and jurisdiction of the CAG. The CAG’s (Duties, Powers and Conditions
of Service) Act, 1971, was passed by the Parliament in response. CAG has the following
responsibilities:
 To audit all expenditures from the Public Account and Contingency Fund of India,
as well as the Public Account and Contingency Fund of each State.
 To audit all expenditures from the Public Account and Contingency Fund of India,
as well as the Public Account and Contingency Fund of each State.
 To examine all financial records maintained by any department of the federal
government and state governments, including balance sheets, profit-and-loss
statements, and any subsidiary accounts.
 To examine the Centre’s and each state’s financial transactions.
 To audit the income and expenses of all organisations and authorities that are
primarily supported by federal or state funds, including government corporations,
other businesses, and organisations, as necessary to comply with applicable laws.

VI. Other Duties of CAG

 Article 150: To provide advice to the President regarding the requirements for the
format in which the accounts of the Centre and the states shall be preserved.
 Article 151: States that the auditor must present his audit reports pertaining to the
Center’s accounts to the President, who will then present them before both Houses
 of Parliament, as well as audit reports pertaining to the accounts of a State to the
Governor, who will then present them to the state legislature.
 Article 279: To determine and certify the net proceeds of any tax or duty (i.e., the
proceeds of a tax or duty less the cost of collection); the CAG’s certification is
binding.
 To prepare and maintain state government accounts. (Audit, that is,
departmentalization of accounts).

VII. Report by CAG

 The three audit reports that CAG submitted to the President and that he then
presented to both Houses of Parliament are the audit reports on appropriation
accounts, audit reports on finance accounts, and audit reports on public
undertakings.
 The appropriation accounts compare actual spending to spending authorised by
Parliament through the Appropriation Act, while the financial accounts of the
Union government display annual receipts and expenditures.
 The Public Accounts Committee reviews the CAG reports and informs Parliament
of its conclusions.

VIII. Role of Comptroller and Auditor General

 Financial Administration: The CAG’s responsibility is to enforce the laws of
Parliament and the Indian Constitution in this area.
 Maintain Accountability: The CAG audit reports guarantee the accountability of the
executive—the council of ministers—to the Parliament in terms of financial
administration.
 Agent of the Parliament: The CAG is only accountable to the Parliament because
he represents the latter and conducts expenditure audits on its behalf.
 Compared to the audit of receipts, stores, and stock, the CAG has more latitude
when it comes to the audit of expenditure.
According to Dr. B.R. Ambedkar, the CAG will be the most significant officer under the
Indian Constitution. Compared to other positions and offices named in the Constitution, the
CAG office has received less attention, although being one of the most vital and pertinent.
It is past time to implement the necessary changes to improve the CAG’s efficiency and
transparency.
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