Comptroller and Auditor General of India (CAG)
The Comptroller and Auditor General of India (CAG) is a constitutional authority established under Article 148 of the Constitution of India. It is an independent body responsible for auditing the accounts of the Union and State governments, including government companies and corporations. The CAG plays a crucial role in ensuring accountability and transparency in public financial management.
Constitutional Provisions and Appointment
Article 148 of the Constitution of India provides for the appointment of the CAG by the President of India. The CAG holds office for a term of six years or until the age of 65 years, whichever is earlier. The CAG is an independent constitutional authority, and their salary and allowances are charged on the Consolidated Fund of India, making them non-votable by the Parliament.
Article 148
Functions and Responsibilities
The CAG audits all expenditure from the Consolidated Fund of India, Contingency Fund of India, and Public Account of India, as well as from the Consolidated Funds of each State and each Union Territory with a legislature. The CAG also audits the accounts of government companies, corporations, and other bodies or authorities substantially financed by the government. The primary objective is to ascertain whether public funds are spent economically, efficiently, and for the purpose for which they were sanctioned.
Powers and Independence
To ensure its independence and effectiveness, the Constitution grants the CAG several powers. The CAG has the right to access all records and documents related to the accounts being audited. The CAG's salary and service conditions cannot be altered to their disadvantage after appointment. The CAG can only be removed from office by the President on the grounds of proved misbehaviour or incapacity, following an address by both Houses of Parliament.
The CAG is often referred to as the 'watchdog of the public purse' due to its critical role in safeguarding public finances.
Types of Audits Conducted by CAG
| Audit Type | Focus | Objective |
|---|---|---|
| Financial Audit | Examination of financial statements to ensure accuracy and compliance with accounting standards. | To express an opinion on the fairness of financial statements. |
| Compliance Audit | Verification of adherence to laws, rules, regulations, and procedures governing financial transactions. | To ensure that expenditures are authorized and within legal limits. |
| Performance Audit | Evaluation of the economy, efficiency, and effectiveness of government programs and activities. | To assess whether public resources are used optimally and achieve intended outcomes. |
CAG's Role in Accountability
The CAG's reports are instrumental in holding the executive accountable to the legislature. By highlighting irregularities, inefficiencies, or financial impropriety, the CAG provides Parliament with the information necessary to question government actions and policies. This oversight mechanism is fundamental to democratic governance and the principle of responsible government.
Public Accounts Committee (PAC) and Committee on Public Undertakings (COPU)
Key Takeaways for UPSC Prelims
For UPSC Prelims, focus on the constitutional basis of the CAG (Article 148), the appointment and removal process, the term of office, the independence of the office, and the broad scope of its audit functions. Understanding the role of the CAG's reports in parliamentary oversight and the key committees involved is also crucial.
Learning Resources
The official portal of the CAG of India, providing comprehensive information about its mandate, functions, reports, and organizational structure.
Direct access to the constitutional provision establishing the office of the Comptroller and Auditor General of India.
Information about the Public Accounts Committee, its composition, and its role in scrutinizing CAG reports.
Official syllabus for the Civil Services Examination, highlighting the importance of constitutional bodies like the CAG.
A detailed explanation of the CAG's role, functions, and powers, tailored for competitive exam preparation.
An in-depth analysis of the CAG's constitutional position, functions, and significance in India's governance framework.
An opinion piece discussing the critical role of the CAG in ensuring financial accountability and transparency in government.
A comprehensive overview of the CAG of India, including its history, powers, and key functions.
Access to various audit reports published by the CAG, offering real-world examples of their work.
A widely recommended textbook chapter that provides a structured and detailed explanation of the CAG for UPSC preparation.