Comptroller and Auditor General of India.

Former Jammu and Kashmir Lieutenant Governor Girish Chandra Murmu was recently appointed as the new Comptroller and Auditor General of India (CAG).

Q. What is CAG?

• The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG) in chapter V under Part V.
• The CAG is mentioned in the Constitution of India under Article 148 – 151.
• He is the head of the Indian Audit and Accounts Department.
• He is the guardian of the public purse and controls the entire financial system of the country at both the levels- the center and state.
• His duty is to uphold the Constitution of India and the laws of Parliament in the field of financial administration.

Q. Who appoints CAG and what is its term? 

A. The CAG is appointed by the President of India by a warrant under his hand and seal.

He holds office for a period of six years or up to the age of 65 years, whichever is earlier.

Q. What are the duties of CAG?

• CAG audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT having a legislative assembly.
• CAG audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
• CAG audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
• CAG audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.

Q. What are reports submitted by him?

A.

• He submits his audit reports relating to the accounts of the Centre and State to the President and Governor, who shall, in turn, place them before both the houses of Parliament and the state legislature respectively.
• He submits 3 audit reports to the President: audit report on appropriation accounts, audit report on finance accounts and audit report on public undertakings.

Q. What are the provisions which ensure the independence of CAG?

• CAG is provided with the security of tenure. He can be removed by the president only in accordance with the procedure mentioned in the Constitution. Thus, he does not hold his office till the pleasure of the president, though he is appointed by him.
• He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.
• His salary and other service conditions are determined by the Parliament. His salary is equal to that of a judge of the Supreme Court.
• Neither his salary nor his rights in respect of leave of absence, pension or age of retirement can be altered to his disadvantage after his appointment.
• The administrative expenses of the office of the CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India. Thus, they are not subject to the vote of Parliament.

Q. What are Constitutional Provisions related to office of CAG?

• Article 148 broadly deals with the CAG appointment, oath and conditions of service.
• Article 149 deals with Duties and Powers of the Comptroller and Auditor-General of India.
• Article 150 says that the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
• Article 151 says that the reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.
• Article 279 – Calculation of "net proceeds" is ascertained and certified by the Comptroller and Auditor-General of India, whose certificate is final.
• Third Schedule – Section IV of the Third Schedule of the Constitution of India prescribes the form of oath or affirmation to be made by the Judges of the Supreme Court and the Comptroller and Auditor-General of India at the time of assumption of office.
• According to Sixth Schedule the accounts of the District Council or Regional Council should be kept in such form as CAG, with the approval of the President, prescribe. In addition these bodies account are audited in such manner as CAG may think fit, and the reports relating to such accounts shall be submitted to the Governor who shall cause them to be laid before the Council.