COMPTROLLER AND AUDITOR GENERAL OF INDIA (CAG)

• Article 148 provides for an independent office of the CAG of India.
• Head of the Indian Audit and Accounts Department; guardian of the public purse.
• Controls entire financial system of the country; acts as a bulwark of Indian democracy.

APPOINTMENT
• Appointed by the President by warrant under his hand and seal.
• Takes oath before the President.
• Tenure: 6 years or up to 65 years (whichever earlier).
• Can resign to the President.
• Removal: Same grounds and procedure as a Supreme Court judge (special majority of Parliament).

INDEPENDENCE
• Security of tenure; removable only by President like SC judge.
• Not eligible for further government office after retirement.
• Salary, allowances charged on Consolidated Fund of India— not subject to parliamentary vote.
• Service conditions cannot be varied to his disadvantage.
• No minister can represent CAG in Parliament.

DUTIES & POWERS
• Audits accounts related to:
  - Consolidated Fund of India, state CFs, and CFs of UTs with legislatures.
  - Contingency Funds and Public Accounts of Centre and states.
• Audits trading, manufacturing, profit-loss accounts of govt departments.
• Audits receipts and expenditures of Centre and states.
• Maintains and compiles accounts of states.
• Audits debt, sinking funds, deposits, advances, remittances.
• Audits bodies when President or Governor requests (e.g., local bodies).
• Advises President on form of accounts (Art.150).
• Submits three reports to President:
  1. Audit Report on Appropriation Accounts
  2. Audit Report on Finance Accounts
  3. Audit Report on Public Undertakings
• Reports submitted to President/Governor and laid before legislatures.
• PAC examines audit reports.

LIMITATIONS
• Role in PSUs and govt companies is limited (private auditors audit; CAG advises appointment).
• Secret service expenditures are not fully audited.
• Constitution envisages “Comptroller” role but CAG performs mainly audit functions.
• No control over issue of money from Consolidated Fund.

IMPORTANT ARTICLES
• Art.148 – CAG Appointment
• Art.149 – Duties & Powers
• Art.150 – Form of Accounts
• Art.151 – Audit Reports
 

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Subject: Polity

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