COMPTROLLER AND AUDITOR GENERAL OF INDIA

The Constitution of India (Article 148) provides for an independent office of the Comptroller and Auditor General of India (CAG). CAG is the head of the Indian Audit and Accounts Department and the guardian of public purse. He controls the entire financial system of the country at the Centre and the State.

APPOINTMENT AND TERM

CAG is appointed by the President of India by a warrant under his hand and seal. He holds the office for a period of 6 year or up to the age of 65 years, whichever is earlier. 

CAG can resign any time from his office by addressing the resignation letter to the President and can also be removed by the President on same ground and in the same manner as a judge of the Supreme Court of India. In other words, he can be removed by the President on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehavior or incapacity.

SAFEGUARD AND INDEPENDENCE OF CAG

Constitution has made some provisions to safeguard and ensure the Independence of CAG.

• He is provided with the security of tenure. He can be removed only by the President in accordance with the procedure as written in Constitution.
• 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 shall be determined by the Parliament. Neither his salary nor his rights in respect of leave of absence, pension, or age of retirement shall be altered to his disadvantage after his appointment.
• CAG’s administrative expenses of offices, salaries, allowances and pension are charged on the consolidated fund of India and they are not subject to vote in Parliament.
• No Minister represents the CAG in Parliament and no Minister can be called upon to take any responsibility for any action done by him.

DUTIES AND POWERS

Article 149 of the Indian Constitution authorizes the Parliament to prescribe the duties and powers of CAG in relation to the accounts of the Union and of the States and of any other authority or body.

The duties and functions of CAG are as follows:

• He audits the accounts related to all expenditure from the Consolidated Fund of India as well as Consolidated Fund of each State and the Union Territory having a legislative assembly.
• He audits all expenditure from the Contingency fund of India and the Public Accounts of India as well as Contingency fund of each State and the Public accounts of each State.
• He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and State Governments.
• CAG audits the receipts and expenditure of all bodies and authorities substantially financed from the government whether central or state as well as Government Companies and other corporations.
• He can audit the accounts of any other authority when requested by the President or the Governor. Example – audit of Local Bodies.
• According to Article 150 of the Constitution CAG advices the president with regard to prescription of the form in which the accounts of the centre and the states shall be kept.
• He ascertains and certifies the net proceeds of any tax or duty as per Article 279; his certificate is final.
• CAG submits his audit report relating to the accounts of centre to the President and of states to the Governor. President place the reports before both houses of Parliament and in States, Governor place the reports before the state legislature.

CAG submits 3 audit reports to the President –

1. Audit report on appropriation accounts.
2. Audit report on finance accounts.
3. Audit report on public undertakings.

The President lays these reports before both houses of Parliament. After this, the Public Accounts Committee examines them and reports its findings to the Parliament.

CAG is an agent of the Parliament and conducts audit of expenditure on behalf of the Parliament. Therefore, he is responsible only to the Parliament.

CURRENT ACHIEVEMENTS OF CAG OF INDIA

The CAG is ranked 9th in the order of precedence and enjoys the same status as a judge of Supreme Court of India. The current CAG of India is Vinod Rai. He is the 11th CAG of India.

The CAG under Vinod Rai has constantly been in the limelight for its reports exposing mega corruption, particularly in 2G spectrum scam, CWG scam and Coal mining scam.

Comptroller and Auditor General of India (CAG) has been appointed as external auditor of three major UN organisations namely:

• The Vienna-based International Atomic Energy Agency (IAEA),
• The Geneva-based World Intellectual Property Organisation (WIPO) and
•  World Food Organisation (WFO).

Comptroller and Auditor General of India, Vinod Rai, has also been elected the Chairman of the United Nations' panel of external auditors.