Comptroller and Auditor General of India (CAG)

Role, Responsibility and qualifications

Logo of Indian Audit and Accounts Dept.
CAG works in IAA Dept.

The Comptroller and Auditor General of India (CAG) is an important constitutional office in India that is responsible for the auditing and accounting of government finances. Here's some information on the establishment and history of the CAG, its role and headquarters, the views of B.R. Ambedkar on the CAG, its relationship with the central and state governments, eligibility and resignation/removal policy, duties and powers, CAG reports, and the various positions within the CAG office:

Establishment and History:

The CAG of India is established under Article 148 of the Indian Constitution. The office of the CAG was established in 1860 during the British colonial era. After India gained independence in 1947, the CAG's functions and powers were enshrined in the Constitution of India, which was adopted in 1950.

Role and Headquarters:

The CAG is an independent authority and acts as the guardian of the public purse. The primary role of the CAG is to audit the accounts of the Union and state governments, including the financial transactions of various ministries, departments, and public sector undertakings. The CAG is also responsible for auditing the accounts of autonomous bodies and any organization that receives government funds.

The headquarters of the CAG is located in New Delhi, the capital city of India.

B.R. Ambedkar on CAG:

B.R. Ambedkar, one of the key architects of the Indian Constitution, emphasized the significance of the CAG. He stated that the CAG plays a crucial role in ensuring financial accountability and transparency in the government.

The CAG is the most important officer in the Constitution of India. ~B.R. Ambedkar

CAG and the Center/State Governments:

At the central level, the CAG is appointed by the President of India. The CAG reports directly to the President and submits audit reports to the Parliament. The Public Accounts Committee (PAC), which is a parliamentary committee, scrutinizes the CAG's reports and examines the audit findings.

At the state level, the CAG is appointed by the Governor of the respective state. The CAG submits audit reports to the Governor and the state legislature. The reports are examined by the Public Accounts Committee at the state level.

Eligibility and Resignation/Removal Policy:

To be eligible for the position of the CAG, a person must have held a high office involving financial expertise or have been a member of the Indian Administrative Service (IAS) or other state civil services for a certain period. The CAG can resign by addressing the resignation letter to the President or the Governor, as applicable.

The CAG can be removed only through the impeachment process, similar to the removal of a judge of the Supreme Court. The removal can be initiated by the President or the Governor, as applicable, and requires a special resolution passed by both houses of Parliament or the state legislature, supported by a two-thirds majority of the members present and voting, and a majority of the total membership of each house.

Duties and Powers (Article 149):

The CAG's duties and powers are outlined in Article 149 of the Indian Constitution. Some of the key duties and powers of the CAG include:

1. Auditing the accounts of the Union and state governments and reporting on the results.

2. Ensuring that the government's financial transactions are conducted as per the law and regulations.

3. Examining the receipts and expenditures of government departments, ministries, and other bodies.

4. Conducting performance audits to assess the effectiveness and efficiency of government programs and policies.

5. Bringing to the notice of the concerned authorities any irregularities or improprieties observed during the audit.

CAG Reports (Article 151):

Article 151 of the Indian Constitution requires the CAG to submit audit reports to the President or the Governor, as applicable. These reports highlight the audit findings, observations, and recommendations related to the accounts and financial management of the government.

CAG Office Positions:

The key positions within the CAG's office include:

1. Comptroller and Auditor General (CAG): The head of the CAG office, appointed by the President or the Governor.

2. Deputy Comptroller and Auditor General (Deputy CAG): Assists the CAG in various administrative and audit-related functions.

3. Additional Deputy Comptroller and Auditor General (Additional Deputy CAG): Assists the CAG and the Deputy CAG in their responsibilities.

4. Principal Accountant General (PAG): Heads the office of the Principal Accountant General and is responsible for audits in specific sectors or departments.

5. Director-General (DG): Heads various directorates within the CAG's office and supervises specific areas of audit.