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Comptroller and Auditor General of India, CAG Full Form and Constitutional Provisions

Full Form of CAG

The full form of CAG is “Comptroller and Auditor General.” The CAG is a constitutional authority responsible for overseeing the financial management and auditing of government institutions in India. This independent body plays a crucial role in ensuring transparency, accountability, and proper utilization of public funds. The CAG conducts audits and assessments of government expenditures, finances, and various programs to ensure they are in line with established regulations and standards. Through its evaluations, the CAG helps uphold the principles of fiscal responsibility and good governance within the country.

Powers of the Comptroller and Auditor General of India

Article 148 of the Indian Constitution establishes the authority of the Comptroller and Auditor General (CAG) office. This article outlines the following key aspects related to the establishment and powers of the CAG:

  1. The President of India appoints the CAG, who can only be removed in a manner similar to the removal of a Supreme Court Judge.
  2. The appointed individual must take an oath of office before the President or a designated official.
  3. The Parliament of India determines the salary, service conditions, leaves, pension, and retirement age, as detailed in the Second Schedule. These terms cannot be changed to the detriment of the incumbent during their tenure.
  4. After their term ends, the CAG cannot hold any further office in the Government of India or any State Government.
  5. The CAG’s powers and functions are subject to the Indian Constitution, Acts of Parliament, and service conditions set for the Indian Audits and Accounts
  6. Department. These rules are determined by the President in consultation with the incumbent.
  7. The expenses related to administering this office, including allowances, salaries, and pensions, are funded by the Consolidated Fund of India.
  8. The incumbent serves for a maximum of 6 years or until reaching the age of 65, whichever comes first.

CAG Constitutional Provisions

  1. Article 148 primarily addresses CAG appointment, oath, and service conditions.
  2. Article 149 delineates the Responsibilities and Powers of the Comptroller and Auditor-General of India.
  3. Article 150 outlines that the Union and State accounts must adhere to the form prescribed by the President on CAG’s advice.
  4. Article 151 states that India’s CAG reports concerning Union accounts are submitted to the President and presented to both Parliament Houses.
  5. Article 279 establishes that the CAG’s certification of “net proceeds” is definitive.
  6. The Third Schedule’s Section IV details the oath for Supreme Court Judges and the CAG during assumption of office.
  7. As per the 6th Schedule, District Council or Regional Council accounts conform to the form prescribed by the CAG, with the President’s approval. The CAG also audits these accounts and submits reports to the Governor for presentation in the Council.

The function of CAG in India

Article 149 of the Constitution forms the legal basis for Parliament to outline the responsibilities and authority of the Comptroller and Auditor General (CAG) concerning accounts of the Union, States, and other bodies. The CAG Duties, Powers, and Conditions of Service (DPC) Act was enacted in 1971, and later amended in 1976 to segregate accounts from audits in the Government of India. The Constitution sets out the following functions of the CAG:

  1. Audit of expenses from Consolidated Fund of India, state funds, and union territory funds with the Legislative Assembly.
  2. Audit of expenses from the Contingency Fund of India, Public Account of India, as well as state contingency funds and public accounts.
  3. Audit trading, manufacturing, profit and loss accounts, and balance sheets of government departments.
  4. Ensuring proper assessment, collection, and allocation of revenue by auditing government receipts and expenditures.
  5. Auditing bodies substantially financed from Central/state revenues, government companies, and other corporations as required by laws.
  6. Auditing government transactions related to debt, funds, deposits, advances, stock accounts, etc., with approval or requirement of the President.
  7. Auditing other authorities when requested, such as local bodies.
  8. Advising the President on the form of Centre and state accounts (Article 150).
  9. Submit audit reports on Central Government accounts to the President, who presents them to Parliament (Article 151).
  10. Submit audit reports on state government accounts to Governors, who present them to state legislatures (Article 151).
  11. Certifying net proceeds of taxes/duties, determining the final net amount.

Guiding the Public Accounts Committee, maintaining state accounts, and submitting three audit reports on Appropriation, Finance, and Public Undertakings to the President. The President shares these reports with Parliament, and the Public Accounts Committee examines and reports its findings.
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List of Comptroller and Auditor General of India

Comptroller and Auditor General of India: Check out the table for the List of Comptroller and Auditor General of India.

List of Comptroller and Auditor General of India
List of Comptroller & Auditor General of India Term
V. Narahari Rao 1948 -1954
A.K Chanda 1954 -1960
A.K Roy 1960 -1966
S. Ranganathan 1966 -1972
A.Bakshi 1972 -1978
Gian Prakash 1978 -1984
T.N Chaturvedi 1984 -1990
C.G Somiah 1990 -1996
V.K Shunglu 1996 – 2002
V. N. Kaul 2002 – 2008
Vinod Rai 2008 – 2013
Shashi Kant Sharma 2013 – 2017
Rajiv Mehrishi 2017 – Aug 2020
Girish Chandra Murmu Present

Role of CAG of India

The Comptroller and Auditor General of India (CAG) is the supreme audit institution of India. It is an independent office established under Article 148 of the Constitution of India. The CAG is responsible for auditing the accounts of the Union Government, the State Governments, and the Union Territories. The CAG also audits the accounts of autonomous bodies and corporations substantially financed by the Government. The CAG has a number of important roles, including:

  • Auditing the accounts of the government: The CAG audits the accounts of the Union Government, the State Governments, and the Union Territories to ensure that they are accurate and that the money has been spent in accordance with the law.
  • Ascertaining whether the money spent was used for the purpose for which it was appropriated: The CAG ascertains whether the money spent by the government was used for the purpose for which it was appropriated by Parliament or the state legislatures.
  • Reporting on the economy and efficiency of government operations: The CAG reports on the economy and efficiency of government operations to help the government improve its performance.
  • Preventing and detecting fraud and corruption: The CAG helps to prevent and detect fraud and corruption in government by conducting audits and investigations.
  • Ensuring accountability of the government to Parliament and the people: The CAG ensures that the government is accountable to Parliament and the people by submitting its reports to Parliament and by making them public.

The CAG is an important institution in Indian democracy. It plays a vital role in ensuring that the government is accountable to the people and that the money is spent wisely. The CAG is also a watchdog against corruption and fraud in government.

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