Comptroller and Auditor General of India (CAG   

Topics Discussed: -

·       Introduction

·       Comparison with UK

·       Provisions in Constitution

·       Independence of CAG

·       Functions and Powers of CAG

·       Introduction

Ø Comptroller and Auditor General of India is the apex authority responsible for external and internal audits of the expenses of the National and state governments. It is popularly known as the CAG of India.

Ø Part V of the Indian Constitution describes the role and responsibilities of this office in Chapter V.

Ø The Comptroller and Auditor General is one of the few offices directly appointed by the President of India.

·       Comparison with UK

In India the institution of CAG only audits the accounts after the expenditure is committed. It does not have control over the withdrawal of money as in UK where the name Comptroller is justified since no money can be drawn from the public exchequer without the approval of the CAG.

·       Provisions of Constitution related to CAG

Ø Art. 148: broadly speaks of the CAG, his appointment, oath and conditions of service

Ø Art. 149: broadly speaks of the Duties and Powers of the CAG

Ø Art. 150: 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.

Ø Art. 151: Audit Reports: The reports of the Comptroller and Auditor-General of India 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.

The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.

·       Independence of CAG

For effective functioning of this important institution of the CAG it is paramount to ensure independence. There are several provisions enshrined in the Constitution to safeguard CAG’s independence.

Ø He is appointed by the President by a warrant under his hand and seal and his oath of office requires him to uphold the Constitution of India and the laws made there-under.

Ø He is provided with a security of tenure and can be removed by the President only in accordance with the procedure mentioned in the Constitution (same as a judge of SC).

Ø He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.

Ø His salary and other service conditions though determined by the Parliament cannot be varied to his disadvantage after appointment.

Ø His administrative powers and the conditions of service of persons serving in the Indian Audit and Accounts Department shall be prescribed by the President only after consulting him.

Ø The administrative expenses of the office of CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India and are not subject to the vote of Parliament.

·       Functions and powers of CAG

CAG derives its audit mandate from different sources like–

ü Constitution (Articles 148 to 151)

ü The Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971

ü Important Judgments

ü Instructions of Government of India

ü Regulations on Audit & Accounts-2007

Ø 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.

Ø 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.

Ø 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.

Ø He 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.

Ø He audits the accounts of any other authority when requested by the President or Governor E.g. Local bodies.

Ø He advises the President with regard to prescription of the form in which the accounts of the Centre and States shall be kept.

Ø He 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.

Ø He submits his audit reports relating to the accounts of a State to the Governor, who shall, in turn, place them before the state legislature.

Ø CAG also acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.