Who is Comptroller and Auditor General?
The Comptroller and Auditor General of India is the apex authority responsible for carrying out external and internal audits of government expenditures. It is often called the CAG of India. In the Constitution, only the Comptroller and Auditor General are entrusted with auditing the accounts of the Union and of the States. Auditing the receipts and expenditures of the Central, the States, and the Union Territories is the responsibility of the Comptroller and Auditor General. Several audit reports are presented to the state legislatures and the Parliament of the union territories each year by the CAG. The CAG is also responsible for auditing government companies, corporations, and bodies, and authorities in accordance with the laws passed by the legislature and the rules promulgated thereunder.
Major Responsibilities of CAG
The office has been given certain privileges and powers that facilitate its duties to facilitate the auditing process. CAG of India is composed primarily of these major powers:
In the course of the audit, the CAG and its staff can inspect any of the offices of the organizations. Moreover, he and his team can scrutinize and question government transactions in every aspect. In his report submitted to Parliament, the CAG may incorporate any objections he has included in his review of the transactions.
The office needs to be able to perform this function smoothly since all financial records, including books, papers, and documents, are authorized for him to view. In addition, the CAG has the right to ask any person or organization for relevant information. A Government of India order made in 1936 to enforce the Act of 1935 affirmed the right of the CAG to ask for information and accounts.
Providing him with free access to files and information is a practice that dates back to the past. Nonetheless, the central government introduced a modification in 1954, requiring secret documents to be sent to the CAG by name specifically and returned as soon as the work is completed.
Explain the Power and Work of CAG
Constitution of India, Article 148, specifies the authority and explains the work of CAG. The following statements are made in regards to the establishment and work of the CAG and its powers:
The President of India only has the authority to appoint CAG, and the removal of CAG is carried only on the same grounds and in the same manner as Supreme Court judges are removed.
Persons appointed to this office must swear an oath of office before the President or another person designated by the office of the President.
In India, salaries, service conditions, leaves of absence, pensions, and retirement ages are determined by Parliament and are outlined in the second schedule in such a way that service conditions and salaries may not be modified to the disadvantage of the incumbent during their tenure.
Neither the Government of India nor any state government has the power to appoint the CAG to any further position after the end of their tenure.
According to the Indian Constitution and all Acts of Parliament, the CAG is bound by the provisions of the Constitution and the service contracts governing the Indian Audit and Accounts Department. Using the President's approval, these will be governed by the regulations.
The Consolidated Fund of India will take care of the administrative costs of this office, including all allowances, salaries, and pensions.
This position is filled for a six-year term or until the incumbent reaches age 65, whichever comes first.
Functions of Comptroller and Auditor General of India
A constitutional function of the government, the Comptroller and Auditor General of India (CAG) are independent of Parliament and the legislature and executive branch officials. Here are some of the functions of comptroller and auditor general of India:
Audit of government ministries and government departments in India and the states.
Audits of the public sector entities of the central and state governments and other autonomous government entities.
Audit of Union or State receipts.
Accounts and stock audits.
Company and corporation audits.
As part of their mandate, Comptroller and Auditor-Generals compile accounts for State Governments, approve pension plans for selected employee categories, and maintain provident fund accounts for most State Governments' employees. Under the supervision of the Comptroller and Auditor General of India, the Indian Audit & Accounts Department (IA&AD) performs these audits and accounting tasks.
Comptroller and Auditor General of India List
From 1948 to the present Comptroller and auditor general of India, the given list contains all information:
Conclusion
Thus, the CAG is one of the important Constitutional bodies of India. It is considered as a permanent body added by the founding fathers of the Constitution. The important thing you need to keep in mind is that the CAG of India does not work as the "Comptroller" but only as a "Auditor General". The reports of the CAG are said to be submitted to the President of the country who is said to be laid down in the Parliament where the PAC (which of the Public Accounts Committee) used to take care of the reports in which CAG also helps the PAC in order to understand the technical reports.
FAQs on Comptroller and Auditor General (CAG)
1. What is the full form of CAG, and what is its primary role in India?
The full form of CAG is the Comptroller and Auditor General of India. This is a constitutional authority established under Article 148 of the Indian Constitution. The CAG is the head of the Indian Audit and Accounts Department and serves as the guardian of the public purse. Its primary role is to audit all receipts and expenditures of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government. More details can be found on the CAG Full Form page.
2. Who appoints the Comptroller and Auditor General of India and what is their tenure?
The Comptroller and Auditor General (CAG) of India is appointed by the President of India by a warrant under his hand and seal. The CAG holds office for a term of six years or up to the age of 65 years, whichever is earlier. This fixed tenure ensures the independence and impartiality of the office, as the CAG cannot be removed arbitrarily by the government.
3. What are the main functions and duties of the CAG of India?
The main functions and duties of the CAG, as prescribed by the Constitution and the CAG's (Duties, Powers and Conditions of Service) Act, 1971, include:
Auditing the accounts related to all expenditure from the Consolidated Fund of India, each state, and each union territory having a Legislative Assembly.
Auditing all transactions of the Union and the states relating to Contingency Funds and Public Accounts.
Auditing the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues.
Auditing the accounts of government companies and other corporations when required by law.
Submitting audit reports to the President (for Union accounts) and the Governor (for State accounts), who then present them to Parliament and the State Legislature, respectively.
4. Why is the office of the CAG designed to be independent from the government?
The independence of the CAG is a cornerstone of India's democratic system of accountability. It is crucial because the CAG must audit the expenditures of the very government that is in power. To ensure impartiality, the Constitution provides several safeguards:
Security of Tenure: The CAG can only be removed from office in the same manner and on the same grounds as a judge of the Supreme Court.
Salary and Service Conditions: The CAG's salary and other service conditions are determined by the Parliament and cannot be altered to their disadvantage after their appointment.
Post-Retirement Bar: After retiring or resigning, the CAG is not eligible for any further office under the Government of India or any state government. This prevents any potential for future favours influencing current actions.
5. Which articles of the Indian Constitution deal with the office of the CAG?
The provisions related to the Comptroller and Auditor General of India are contained in Articles 148 to 151 in Part V of the Constitution. Here is a brief overview:
Article 148: Establishes the office of the CAG, their appointment, and removal.
Article 149: Defines the duties and powers of the CAG.
Article 150: States that the accounts of the Union and the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
Article 151: Deals with the submission of audit reports. The CAG submits reports on Union accounts to the President and on State accounts to the Governor.
6. What happens to the audit reports prepared by the CAG?
After the CAG prepares the audit reports, they are not just filed away. The CAG submits the audit reports on the accounts of the Union to the President, who causes them to be laid before both Houses of Parliament. Similarly, reports on state accounts are submitted to the Governor, who lays them before the state legislature. In the Indian Parliament, these reports are examined by the Public Accounts Committee (PAC), which scrutinises the findings and holds the government accountable for any irregularities or inefficiencies pointed out by the CAG.
7. Is the CAG of India truly a 'Comptroller' as the name suggests?
This is a key conceptual point. The term 'Comptroller' implies the power to control the issue of money from the public exchequer before it is spent. In the UK, the Comptroller and Auditor General has this power. However, in India, the CAG's role is primarily that of an 'Auditor General'. The CAG audits expenditures after they have been incurred, not before. The CAG does not have the power to pre-authorise the withdrawal of funds from the Consolidated Fund of India. Therefore, the title 'Comptroller' in the Indian context is largely a legacy from the British system and does not reflect the actual powers exercised.
8. What kinds of bodies and accounts does the CAG audit?
The CAG's audit jurisdiction is very wide and is not limited to just central and state government departments. It includes:
All departments and offices of the Government of India and state governments.
Public Sector Undertakings (PSUs) and other government companies, which are audited directly by the CAG or by auditors appointed on the CAG's advice.
Autonomous bodies and authorities that are substantially funded by the Consolidated Fund of India or a state.
The accounts of local bodies (Panchayati Raj Institutions and Urban Local Bodies) can also be audited by the CAG upon request by the President or Governor.
9. How does the CAG ensure financial accountability in the Indian political system?
The CAG is a vital institution for ensuring the financial accountability of the executive (the government) to the legislature (the Parliament/State Legislatures). By conducting independent audits, the CAG verifies whether public funds have been spent legally, efficiently, and for the intended purpose. The CAG's reports highlight instances of waste, mismanagement, and corruption. These reports are then scrutinised by legislative committees like the Public Accounts Committee, making the government answerable for its financial conduct. This entire process upholds the principles of transparency and good governance, which are central to the study of Political Science.
