The Comptroller and Auditor General (CAG) of India audits how the central and state governments spend public money. Dr B R Ambedkar described the CAG as perhaps the most important officer under the Constitution. Here is how the office works.
Constitutional basis
Articles 148 to 151 of the Constitution deal with the CAG. The Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 lays down details.
Appointment and term
- The CAG is appointed by the President by warrant under hand and seal.
- The CAG holds office for six years or until the age of 65, whichever comes first.
- After leaving office, the CAG cannot hold any other office under the central or state governments.
K Sanjay Murthy took charge as CAG in November 2024.
Independence
- The CAG can be removed only in the same way as a Supreme Court judge, through a process in Parliament on grounds of proven misbehaviour or incapacity.
- Salary and conditions cannot be changed to the CAG’s disadvantage after appointment.
- Expenses of the CAG’s office are charged on the Consolidated Fund of India, so they are not voted on by Parliament.
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What the CAG audits
- All spending from the Consolidated Fund of India and of each state and union territory with a legislature.
- Contingency funds and public accounts.
- Government companies and corporations, as per law.
- Bodies substantially funded by the government.
The CAG conducts compliance audits, financial audits and performance audits, which examine whether schemes achieved their goals efficiently.
How reports reach the legislature
Under Article 151, the CAG’s reports on central accounts are submitted to the President, who has them laid before Parliament. Reports on state accounts go to the Governor and are placed before the state legislature.
Role of the Public Accounts Committee
The Public Accounts Committee (PAC) of Parliament examines CAG reports in detail, questions officials and makes recommendations. The CAG is often called a friend, philosopher and guide of the PAC.
Famous reports
CAG reports have shaped national debate. Its 2010 report on the allocation of 2G spectrum estimated a presumptive loss to the exchequer, which became a major political issue. Reports on coal block allocation and defence purchases have also drawn wide attention.
Indian Audit and Accounts Department
The CAG heads the Indian Audit and Accounts Department, staffed by officers of the Indian Audit and Accounts Service.
Bottom line
The CAG is the watchdog of public money. Its independent audits and reports help Parliament and the public hold governments accountable.
Source / स्रोत: Comptroller and Auditor General of India, Constitution of India, Legislative Department, Lok Sabha
