Comptroller and Auditor General

Comptroller and Auditor General (CAG) of India is a pivotal constitutional authority in the Indian governance system, primarily responsible for auditing the revenues and expenditures of the Government of India and the state governments. Established under Article 148 of the Constitution of India, the CAG is an independent office tasked with ensuring accountability, transparency, and governance in the financial administration of the country.

Appointment and Term

Comptroller and Auditor General is appointed by the President of India for a term of six years or up to the age of 65 years, whichever is earlier. Once appointed, the CAG cannot be removed from office except on the grounds and in the manner applicable to a judge of the Supreme Court of India, which ensures the independence of the office.

Duties and Powers

Duties and Powers of the CAG are extensive and are primarily detailed in the Constitution and the Comptroller and Auditor-General’s (Duties, Powers, and Conditions of Service) Act, 1971. The key responsibilities are:

1. Auditing Government Accounts:

CAG audits all expenditures from the Consolidated Fund of India, the consolidated funds of each state, and the consolidated fund of each union territory having a legislative assembly. This includes auditing all transactions of the central and state governments related to debt, sinking funds, and deposits. The office audits all expenditure from the Contingency Funds and Public Accounts, as well as all trading, manufacturing, profit and loss accounts, balance sheets, and other subsidiary accounts kept in any department of the Central or State governments.

2. Auditing Government Companies and Corporations:

CAG audits the accounts of all government companies as defined in the Companies Act, 2013, and also audits any corporation established by a central, state, or local act, where laws governing such corporations provide for audit by the CAG.

3. Reporting:

CAG reports on the accounts of the Union and States to the President and the Governor(s) respectively, who shall, in turn, place these reports before the Parliament and the state legislatures. These reports are critical for legislative review as they often highlight mismanagement, wastage, and inefficiency in government financial operations.

4. Advisory Role:

Besides auditing, the CAG also has an advisory role and may be consulted by the government on accounting and auditing matters.

5. Role in Local Bodies:

CAG may also be tasked with auditing the accounts of local bodies.

Importance of the CAG

Comptroller and Auditor General plays a crucial role in maintaining financial discipline and accountability within the government machinery. By auditing the expenditure and ensuring that funds are used efficiently, the CAG helps in minimizing corruption and wasteful use of public resources. The CAG’s findings are taken seriously by various parliamentary committees such as the Public Accounts Committee (PAC), which review the CAG’s reports and take corrective actions based on recommendations.

Independence

independence of the CAG is crucial for its functioning and is ensured by various constitutional provisions:

• CAG is provided with a security of tenure and can be removed only by a process similar to that applied to a Supreme Court judge.
• CAG is not eligible for further office, either under the Government of India or of any state, after he/she has ceased to hold office.
• The salary and other conditions of service of the CAG are determined by Parliament and cannot be varied to his/her disadvantage after appointment.