The Comptroller and Auditor General (CAG) of India

Position of Comptroller and Auditor General (CAG) of India

• The Comptroller and Auditor General (CAG) is the Supreme Audit Authority of India.
• Acts as the Guardian of the Public Purse by auditing the financial transactions of the Union and State Governments.
• Exercises control over the entire financial administration of the Union and the States. (Article 148).

Appointment of  Comptroller and Auditor General (CAG) of India

• Appointed by the President of India.
• Can be removed only in the same manner and on the same grounds as a Judge of the Supreme Court, i.e., by a special parliamentary process on grounds of proved misbehaviour or incapacity. (Article 148).

Salary & Service Conditions

• Salary and service conditions are determined by Parliament.
• These cannot be altered to his disadvantage after appointment.
• Receives a salary equivalent to that of a Judge of the Supreme Court.
• Other service conditions are similar to those of a Secretary to the Government of India.
• Not eligible for any further Government office after retirement, ensuring complete independence.

Tenure

• Holds office for Six Years or until attaining the Age of 65 Years, whichever is earlier.
• May resign by submitting a written resignation addressed to the President of India.

Financial Independence

• The Salary, Allowances, Pension, and Administrative Expenses of the CAG’s Office are charged upon the Consolidated Fund of India.
• These expenditures are Non-Votable, ensuring institutional independence. (Article 148(6)).

Duties & Functions

1. Audit of Consolidated Fund

• Audits all Receipts and Expenditure from the Consolidated Fund of India, the Consolidated Funds of States, and Union Territories having Legislatures.
• Ensures that expenditure is incurred in accordance with law.

2. Audit of Contingency Fund & Public Account

• Audits all transactions relating to the Contingency Fund and Public Account of both the Union and the States.

3. Audit of Government Trading & Commercial Accounts

• Examines the Trading, Manufacturing, Profit & Loss Accounts, and other commercial records maintained by Government Departments.

4. Audit of Revenue

• Verifies that adequate systems exist for the Assessment, Collection, and Proper Allocation of Government Revenue.

5. Audit of Government-Funded Bodies

• Audits the Receipts and Expenditure of:
  
  • Government Companies
  • Statutory Corporations
  • Authorities
  • Bodies substantially financed by the Union or State Governments, whenever required by law.

Constitutional Provisions