CAG

Notes

The Comptroller and Auditor General of India (CAG) is provided by Art. 148-151. Dr. B.R. Ambedkar called the CAG possibly "the most important officer under the Constitution". The CAG is the guardian of the public purse and heads the Indian Audit and Accounts Department.

Appointment and tenure

Appointed by the President; oath before the President.
Term: six years or until age 65, whichever is earlier. Salary equal to a Supreme Court judge.
Removal: only in the same manner and on the same grounds as a Supreme Court judge (Art. 148(1)).
Not eligible for any further office under the Government of India or a State after retirement. Not a member of the executive.

Duties and powers (Art. 149; CAG's (Duties, Powers and Conditions of Service) Act, 1971)

Audits accounts of the Consolidated Fund, Contingency Fund and Public Account of the Union and States and Union Territories with legislatures.
Audits trading, manufacturing, profit and loss accounts of departments; government companies, corporations, and bodies substantially financed by the Government.
Audit reports on the Union accounts go to the President, who lays them before Parliament; for States, to the Governor (Art. 151).
The Public Accounts Committee examines CAG reports; the CAG is its "friend, philosopher and guide".
Audit principles: legality and regularity, propriety, and efficiency-cum-performance audit.

Limitations and issues

The CAG audits after the expenditure; it has no control over the issue of money from the Consolidated Fund, unlike the UK.
Reports such as the 2G spectrum, Commonwealth Games and coal allocation drew public attention.
Appointment is by executive discretion; calls for a collegium-like process.

Key Points

Art. 148-151; guardian of public finances.
Six years or 65; removed like a Supreme Court judge.
Reports to the President/Governor; examined by PAC.
Audit after expenditure; no control over issue of funds.
Ambedkar: the most important officer under the Constitution.

MCQs

Q1. The CAG can be removed from office: (a) By the President on the PM's advice (b) On the same grounds as a Supreme Court judge (c) By the Lok Sabha (d) By the Supreme Court Ans: (b).

Q2. The CAG submits audit reports of the Union accounts to: (a) Parliament directly (b) The President (c) The PAC (d) The Finance Minister Ans: (b). Art. 151.

Q3. The CAG is called the "friend, philosopher and guide" of: (a) Estimates Committee (b) Public Accounts Committee (c) Committee on Public Undertakings (d) Finance Commission Ans: (b).