Indian Polity -CAG(Comptroller and Auditor General) of India

CAG(Comptroller and Auditor General) of India [Indian Polity Notes for UPSC, SSC etc. ] :

This Article discusses the provisions contained in the Constitution of India regarding the constitutional post of the  Comptroller and Auditor General of India.


Comptroller and Auditor General of India:

  • CAG is the head of the Indian Audit and Accounts Department.
  • CAG is the guardian of public purse and controls the entire financial system of the country- both at Centre and at States.
  • Article 148 of the constitution provides for the office of Comptroller and Auditor General of India.
  • It is a Constitutional body.

What are the functions and duties of CAG (Comptroller and Auditor General) of India ?

  • CAG audits all expenditure from Consolidated Fund of India and each state and of each UT having a Legislative assembly
  • CAG audits all transactions of Unions and States relating to Contingency Funds and Public Accounts.
  • CAG also audits all trading, manufacturing, profit and loss accounts and balance-sheets and other subsidiary accounts kept in any department of the Union or of a State.
  • Audits all receipt of Union and state  and to satisfy himself that that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper allocation of revenue.
  • Audits accounts of Government Companies (in pursuance of Companies Act) and all bodies or authorities substantially financed by Central or State govt.
  • Audits accounts of corporations as prescribed by law of Parliament or State Legislature.
  • CAG audits account of any other authority or body when requested by President or Governor of State.
  • To audit grants in aid, loan, debt, advances, sinking funds, stock accounts and others of Union and state with consent of President or governor as case may be.
  • The accounts of Union and States shall be kept in such form as President may prescribe on advice of CAG (Article 150).
  • The CAG submits his reports related to accounts to President or Governor who shall cause them to be laid before each house of Parliament.
  • The CAG has the power while performing his duties to inspect any office of accounts under control of Union or a State.
  • The CAG ascertains and certifies that net proceeds of tax or duty and his Certificate is final. Net proceeds means proceeds of a tax minus cost of collection.
  • The CAG acts as a guide, friend of Public Accounts Committee of Parliament while scrutinising the audit reports of CAG.

How the Comptroller and Auditor General (CAG) of India of India is appointed and removed?

  • By the President of India.
  • The CAG holds office for a period of 6 years or upto 65 years of age, whichever is earlier.
  • His salary is equal to that of a Supreme court judge.
  • Removal:
  • He can’t be removed from his office except in like manner and on grounds as of a judge of SC. It means he can be removed by a special resolution passed by both houses of parliament with special majority only on the grounds of incapacity or proved misbehavior.
  • He can resign by submitting his resignation to the President.
  • He is not eligible for further appointment, either under Government of India or under any state government.

Status of the CAG of India:

  • CAG has no power to audit secret service expenditure as declared by Govt or Parliament. He has to be satisfied only with the certificate given by competent authority.
  • The CAG is actually performing role of Auditor General and not of Comptroller as he has no control over withdrawal of Money from Consolidated Fund but only has power to audit after expenditure is done.
  • Unlike India, in Britain CAG has powers of both Comptroller and Auditor General as executive can’t withdraw money from public exchequer without approval of CAG. So, CAG of Britain is more powerful than the CAG of India.


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