About CAG
- The CAG of India, as per Article 148 of the Constitution, heads the Indian Audit and Accounts Department (IA-AD).
- Responsible for safeguarding the public purse and overseeing the financial system at both central and state levels.
- Upholds the Constitution and parliamentary laws in financial administration.
- Considered one of the key pillars of India’s democratic system, alongside the Supreme Court, Election Commission, and UPSC.
- Governed by the Comptroller and Auditor-General’s (Duties, Powers, and Conditions of Service) Act, 1971, with amendments in 1976, 1984, and 1987.
Shri K. Sanjay Murthy was sworn in as the Comptroller and Auditor General of India on 21st November 2024.
Appointment and Term
Article 148: Deals with appointment, oath, and service conditions of the CAG
- Appointed by the President of India by a warrant under his hand and seal.
- Serves a term of six years or until the age of 65, whichever is earlier.
- Takes an oath to uphold the Constitution and perform duties impartially.
- Can be removed by the President on the same grounds and process as a Supreme Court judge (special majority resolution in both Houses of Parliament for proven misbehavior or incapacity).
- Can resign at any time by addressing a resignation letter to the President.
Independence
- Can only be removed following a constitutional procedure, not at the President’s pleasure.
- Ineligible for any further office under the Government of India or any State after leaving office.
- Salary is determined by Parliament, equal to that of a Supreme Court judge.
- The President, in consultation with the CAG, prescribes service conditions for staff.
- Administrative expenses, including salaries, allowances, and pensions, are charged upon the Consolidated Fund of India, not subject to Parliamentary vote.
- No minister can represent the CAG in Parliament or take responsibility for its actions.
Duties and Powers
Article 149: Specifies duties and powers of the CAG
- Audits accounts related to expenditure from the Consolidated Fund of India and State funds.
- Audits government corporations, public sector undertakings, and bodies substantially funded by the government.
- Provides a certificate on the net proceeds of taxes and duties.
- Audits transactions related to debt, advances, and suspense accounts.
- Submits audit reports to the President, who places them before (Article 151)
- Reports are examined by the Public Accounts Committee (PAC).
Role
- Acts as an agent of Parliament, ensuring legal and efficient use of public funds.
- Reviews whether money disbursed was legally available and correctly applied.
- Ensures taxpayer money is spent lawfully and for its intended purposes.
- Conducts propriety audits to assess wisdom, faithfulness, and economy of expenditure.
- Unlike Britain’s CAG, India’s CAG does not control fund issuance and only functions as an Auditor-General.
International Audits
- IAEA (2022-2027): External Auditor for the International Atomic Energy Agency.
- FAO (2020-2025): Audits the Food and Agriculture Organization.
How does CAG Strengthens Democracy?
- Ensuring Accountability: Maintains accountability, transparency, and governance by ensuring responsible use of public funds.
- Strengthening Local Governance:
- Supports Panchayati Raj Institutions (PRIs) and urban local bodies.
- Annual Technical Inspection Reports (ATIR) assess local government performance.
- Collaborates with ICAI to offer online courses for skilled accountants.
- Safeguarding Separation of Powers: Audits ensure financial activities align with legislative intent, maintaining a balance of power.
- Citizen-Centric Approach:
- Involves citizens in audit processes to improve transparency.
- Uses citizen feedback to identify high-risk areas for mismanagement.
This ensures financial discipline, transparency, and accountability in public administration.
