Constitutional Bodies in India- Comptroller and Auditor General (CAG) of India

• It is an apex authority accountable for external and internal audits of the expenses of the Union and state governments
• It is generally known as the CAG of India
• Internationally, the CAG of the UK and the Comptroller General of the US have 10 and 15 years of term respectively
• It is an apex authority accountable for external and internal audits of the expenses of the Union and state governments
• It is generally known as the CAG of India

• Part V of the Indian Constitution illustrates the role and responsibilities of this office in Chapter V
• The president of India is in charge of  directly appointing the CAG

Provisions of Constitution related to CAG:

• Article 148: CAG, his appointment, oath and conditions of service
• Article 149: Duties and authorities of the CAG
• Article 150: The description of the Union and State could be stated in the forms as prescribed by the President, advised by CAG
• Article 151: Audit Reports: The CAG’s reports on the Union’s accounts may be sent to the President, who will ensure that they are laid before each House of Parliament
• The CAG may send reports detailing a State’s accounts to the Governor of the State, who shall cause them to be laid before the State’s Legislature
• Article 279: He discovers and validates 279 the net revenue of any tax or duty

Independence of CAG:

It is critical to provide independence to this vital CAG institution in order for it to function effectively. The Constitution contains a number of clauses that protect the CAG’s independence.

• The President appoints CAG by a warrant under his hand and seal
• The CAG is under oath to demand to uphold the Constitution of India and the laws established under it
• He is offered the security of tenure and can be removed by the President only according to the procedure mentioned in the Constitution (same as a judge of SC)
• After ceasing to hold office, he is not entitled to the further office, both under the Government of India and of any state
• Despite the fact that his pay and other service requirements are set by Parliament, they cannot be modified to his disadvantage after he is appointed
• Only after consultation with him can his administrative powers and the conditions of service of those employed by the Indian Audit and Accounts Department be detailed
• The administrative expenses of the CAG’s office, comprising 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 diverse sources like

• Constitution (Articles 148 to 151)
• The Comptroller and Auditor General’s Act, 1971
• Important Judgments
• Instructions of Government of India 
• Regulations on Audit and Accounts-2007

• CAG inspects the accounts parallel to all expenditure from the Consolidated Fund of India, Consolidated Fund of each State and Union Territories has a legislative assembly
• He examines all expenditures from the Contingency Fund of India and the Public Account of India, and also from each state’s Contingency Fund and State’s Public Account
• He audits all trading, production, profit and loss reports, balance sheets and other subsidiary accounts held by every central and state government agency
• He audits the receipts and expenditure accounts of all bodies and authorities significantly financed from the Central or State revenues; government companies; other corporations and bodies when so needed by related laws of the land
• He audits the accounts of any other authority when requested by the President or Governor, for example Local bodies
• He guides the President of India with regard to the instructions of the setout in which the accounts of the Centre and States should be kept
• He presents his audit records associated with the accounts of the Centre to the President, who must then present them to both the houses of parliament
• He sets forth his audit records linked to the accounts of a State to the Governor, who must present them before the state legislature
• CAG also works as a mentor, friend and adviser for the Public Accounts 280 Committee of the Parliament
• CAG submits 3 audit reports to the President who places them to the house – appropriation account, finance account and public undertaking
• The public accounts committee inspects them and submits a report to the house. The report of survey/audit of public agreements is submitted to the Public Undertakings Committee
• With regards to auditing of accounts of Government companies and corporations, CAG has a limited role. They are fully audited by it or the government appoints private auditors for them in consultation with CAG, here CAG conducts supplementary audits OR the private auditor audits the accounts and there is no role of CAG
• Shorter incumbency due to lack of continuity of the leadership and loss of expertise works as an obstacle to the independent and proper functioning of the institution
• Internationally, the CAG of the UK has 10 years of the term and the Comptroller General of the US has 15 years of tenure

Conclusion

The Constitutional Authority in India is the Comptroller and Auditor General of India, which was formed under Article 148 of the Indian Constitution. He has the authority to audit the Government of India’s and state governments’ receipts and expenditures, as well as those of autonomous bodies and enterprises that are heavily sponsored by the government. The CAG also serves as the statutory auditor of government-owned firms and does supplementary audits. The CAG of India is established under Articles 148–151 of the Indian Constitution. The Constitution contains many measures that protect the CAG’s independence. The CAG’s (DPC) (Duties, Powers, and Conditions of Service) Act, 1971 was enacted in accordance with the constitution’s stipulations.