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Introduction

The Apex Authority for External and Internal Audits of the National and State Government Expenses is the Comptroller and Auditor General of India. It is commonly referred to as India’s CAG. The current CAG of India is Girish Chandra Murmu.

Independence of CAG

  • He or she is given tenure and can only be dismissed by the president in accordance with the procedures outlined in the Constitution. That is, even if the President appoints the CAG, he or she serves till the President’s pleasure.
  • After leaving the CAG’s position, he or she is ineligible to occupy any other position in the Indian government or in any state.
  • The CAG’s pay and other working conditions are set by Parliament. His or her remuneration is comparable to that of a Supreme Court judge.
  • After the appointment, neither the CAG’s pay nor his or her entitlements to leave of absence, pension, or retirement age can be changed to his or her disadvantage.
  • After consultation with the CAG, the President prescribes the conditions of service for persons serving in the Indian Audit and Accounts Department, as well as the CAG’s administrative authorities.
  • The administrative expenses of the CAG, including all salaries, allowances, and pensions, are charged to the CFI, which means they are not subject to parliamentary approval.

Constitutional Provisions of CAG

In Chapter V of Part V of the Indian Constitution, the duties and responsibilities of this office are described. One of the few offices directly appointed by the President of India is the Comptroller and Auditor General.

Appointment of CAG of India

Article 148 of the Indian Constitution deals with the appointment of CAG of India. CAG is appointed by the President by warrant.

Powers of CAG of India

Certain privileges and powers that facilitate the auditing process have been granted to this office in order for it to properly fulfil its tasks. The CAG of India has the following major powers under Article 149 of the Indian Constitution-

  • Any office of the organisations under their audit can be inspected by the Comptroller and Auditor General or his staff. He and his team have the ability to analyse government transactions and ask the administration about various elements of these transactions. After reviewing the transactions, the CAG may either remove his complaints or, if he believes they are substantial, include them in his report to Parliament.
  • To ensure that the office can carry out this role efficiently, he has full access to all financial records, including books, paperwork, and records. Furthermore, the CAG has the authority to request pertinent information from any individual or entity. His right to demand information and accounts is protected by law.

Duties of CAG of India

Article 149 of the Indian Constitution also talks about the duties of CAG of India. It is the duty of CAG of India to carry out such responsibilities and exercises such powers in connection to the accounts of the Union of India, the states, and any other bodies or authorities as may be required by any law passed by Parliament.

The other duties of CAG are mentioned in provisions of the Constitution which are as followed-

  • To advise the President on the prescription of the form in which the Centre’s and states accounts must be kept which is mentioned in Article 150 of the Indian Constitution.
  • To submit his audit reports related to the finances of the Centre to the President, who will then present them to both Houses of Parliament, and to submit audit reports relating to a State’s accounts to the Governor, who will then present them to the state legislature as mentioned in Article 151 of the Indian Constitution.
  • To determine and certify the net proceeds (tax or duty proceeds minus collection costs) of any tax or duty, and the CAG’s certification will be definitive as per Article 279 of the Constitution of India.

The Comptroller and Auditor General of India (Duties, Powers, and Conditions of Service) Act, 1971 establishes the CAG‘s auditing powers. The CAG of India can audit the following under this act:

  • The Consolidated Funds, as well as the states and union territories, various receipts and expenditure money.
  • All trading, manufacturing, profit and loss accounts, balance sheets, and any subsidiary accounts kept in any department, as well as all transactions connected to the Contingency Funds and Public Accounts.
  • All government offices’ and departments’ stocks and stores.
  • To audit the account of all government firms established under the Indian Companies Act, 1956.
  • All central government corporations whose Acts require the CAG to examine their accounts.
  • Accounts of all authorities and organisations with significant fund of Consolidated Fund.  Accounts of any authority, even if it is not primarily supported by the government, at the Governor/President request or on the CAG’s own initiative.

Conclusion

According to Dr. B.R. Ambedkar, the CAG will be the most significant officer under the Indian Constitution. The office of the CAG has received less attention in comparison to other constitutionally mandated posts and offices, although it is one of the most important and relevant. It is time to implement necessary reforms to make the CAG’s operations more transparent and efficient.