Comptroller and Auditor General (CAG) of India

Comptroller and Auditor General (CAG) of India

About CAG

The Comptroller and Auditor General (CAG) of India is the Constitutional Authority in India, established under Article 148 of the Constitution of India. He is empowered to Audit all receipts and expenditure of the Government of India as well as the State Governments, including those of autonomous bodies and corporations substantially financed by the Government. It means he is empowered to audit any body, authority or office which is substantially financed from moneys provided by Government of India, under the terms of any law enacted by either House of Parliament or otherwise.

Purpose of CAG

CAG is a Constitutional Authority established for the purpose of audit of receipts and expenditure of the Government of India and the state governments. The CAG is responsible directly to the Indian Parliament.

Functions/Duties of CAG

The CAG of India is a constitutional authority which audits government expenditures and actions. As per the provisions of the Constitution, the CAG's (DPC) (Duties, Powers and Conditions of Service) Act, 1971 was enacted. As per the various provisions, the duties of the CAG include the audit of:

• Receipts and expenditure from the Consolidated Fund of India and of the State and Union Territory having legislative assembly.
• Trading, manufacturing, profit and loss accounts and balance sheets, and other subsidiary accounts kept in any Government department; Accounts of stores and stock kept in Government offices or departments.
• Government companies as per the provisions of the Companies Act, 2013.
• Corporations established by or under laws made by Parliament in accordance with the provisions of the respective legislation.
• Authorities and bodies substantially financed from the Consolidated Funds of the Union and State Governments. Anybody or authority even though not substantially financed from the Consolidated Fund, the audit of which may be entrusted to the C&AG.
• Grants and loans given by Government to bodies and authorities for specific purposes.
• Entrusted audits e.g. those of Panchayati Raj Institutions and Urban Local Bodies under Technical Guidance & Support (TGS).

Appointment of CAG

Comptroller and Auditor General (CAG) of India is a constitutional Authority appointed by President of India following a recommendation by the Prime Minister by virtue of powers vested in him under clause (1) of Article 148 of Constitution of India. Constitutionally his position is comparable with the Judge of Supreme court of India in so for as his salary, independence and removal from office is concerned.

Removal of CAG

The CAG can be removed only on an address from both houses of parliament on the ground of proved misbehaviour or incapacity. The CAG vacates the office on attaining the age of 65 years or 6-year term, whichever is earlier or by impeachment process.