{"id":234357,"date":"2023-03-25T15:05:30","date_gmt":"2023-03-25T09:35:30","guid":{"rendered":"https:\/\/blog.forumias.com\/?page_id=234357"},"modified":"2023-04-12T14:44:56","modified_gmt":"2023-04-12T09:14:56","slug":"cag","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/cag\/","title":{"rendered":"Comptroller and Auditor General (CAG)"},"content":{"rendered":"

Comptroller and Auditor General is an independent authority under Article 148 of the Indian Constitution.<\/p>\n

Comptroller and Auditor General: Constitutional Provisions<\/h2>\n
    \n
  1. Appointed by the President for a term of 6years\/65 years of age whichever is earlier.<\/li>\n
  2. Removal of CAG is in same manner as Judge of Supreme court.<\/li>\n
  3. Oath is administered by president\/ any other member appointed by him.<\/li>\n
  4. CAG is not eligible for office under the Government of India\/state after retirement.<\/li>\n
  5. Salary and office expenses charged on consolidated fund of India and service conditions cannot be varied after appointment, to his disadvantage.<\/li>\n<\/ol>\n

    Comptroller and Auditor General: Powers<\/h2>\n
      \n
    1. As a guardian of public purse, CAG audits the accounts of [a] expenditure from the Consolidated Fund of India [b] Consolidated Fund of each state and UT\u2019s having a legislative assembly [c] Contingency Fund of India [d] Public Account of India [e] Contingency Fund and Public Account of each state [f] accounts of any central\/state departments [g] accounts of any PSU\/authority funded by central\/state government [h] Audit on appropriation account [i] any other function assigned by president\/Governor.<\/li>\n
    2. Type of audits carried out by CAG include Financial audit [expenditure & revenue]; Propriety audit [whether expenditure is made in public interest] and Performance audit [efficiency in spending].<\/li>\n
    3. CAG cannot audit Secret service fund and some public corporations [ for e.g. LIC, RBI, SBI].<\/li>\n
    4. Acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.<\/li>\n<\/ol>\n

      Comptroller and Auditor General: Issues<\/h2>\n
        \n
      1. No criterion\/procedure in the Constitution\u00a0for appointment of CAG.<\/li>\n
      2. Audits are getting complex for reasons like corruption\/ maladministration\/ denial of records increasing the work load.<\/li>\n
      3. Accounts are audited after actual expenditure is made, a mere post-facto audit.<\/li>\n
      4. CAG do not have power to take action on serious observations.<\/li>\n
      5. CAG revealing sensitive public information to the media.<\/li>\n<\/ol>\n

        Comptroller and Auditor General: Reforms<\/h2>\n
          \n
        1. CAG should made to act as comptroller like in UK.<\/li>\n
        2. CAG should be made a multimember body to decrease work load.<\/li>\n
        3. Government should devise a mechanism to take actions on observations of CAG.<\/li>\n
        4. Bring all Panchayat Raj Institutions and societies benefitting from government, within the ambit of the CAG.<\/li>\n
        5. A collegium type mechanism to appoint CAG<\/li>\n
        6. To amend CAG act 1971 to keep pace with changes in governance as recommended by former CAG Vinod Rai.<\/li>\n<\/ol>\n

          Comptroller and Auditor General: Important judgements<\/h2>\n