Comptroller and Auditor General of India (CAG)

About Comptroller and Auditor General of India (CAG):

• CAG is the apex authority responsible for external and internal audits of the expenses of the National and state governments in the country.
• The Constitution of India provides for an independent office of the CAG in Chapter V.
• The CAG is mentioned in the Constitution of India under Article 148 – 151.
• Constitutional Provisions:
  • Article 148broadly deals with the CAG appointment, oath and conditions of service.
  • Article 149deals with duties and powers of the CAG.
  • Article 150says that the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
  • Article 151says that the reports of the CAG 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.
  • As per Article 279, Calculation of "net proceeds" is ascertained and certified by the CAG, whose certificate is final.
• Appointment and Terms of Service:
  • As per Article 148 of the Constitution, there shall be a Comptroller and Auditor-General of India who shall be appointed by the President and can be removed from office only in the manner and on the grounds that a Judge of the Supreme Court is removed.
  • He holds office for a period of six years or upto the age of 65 years, whichever is earlier.
• Functions of CAG:
  • CAG audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT’s having a legislative assembly.
  • He audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
  • He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
  • CAG audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.
  • He audits the accounts of any other authority when requested by the President or Governor e.g. Local bodies.
  • He advises the President with regard to prescription of the form in which the accounts of the Centre and States shall be kept.
• Reports by CAG: The CAG submits his audit reports relating to the accounts of the Centre to the President, who shall, in turn, place them before both the houses of Parliament. He submits 3 audit reports to the President-
  • Audit report on appropriation accounts;
  • Audit report on finance accounts;
  • Audit report on public undertakings;
• He also submits his audit reports relating to the accounts of a State to the Governor, who shall, in turn, place them before the state legislature.