Comptroller and Auditor General of India

Article 148 of the Indian Constitution provides for an Independent office of the Comptroller and Auditor General of India (CAG). He is the head of the Indian Audit and Account Department. At both Central and State level the Comptroller and Auditor General of India controls the entire financial system of the country.

Appointment of CAG

The Comptroller and Auditor General of India is appointed by the President of India for a full term of 6 years or 65 years of age whichever comes earlier. By writing a resignation letter to the President, the Comptroller and Auditor General

can resign at any time. The President can remove him from his past on the same ground and in the same manner as a judge of the Supreme Court of India. He can be removed by the President on the basis of a resolution passed in the both Houses of the Parliament with special majority, either on the ground of proved misbehaviour or incapacity.

Duties and Powers

The Parliament enacted the CAG’s Act, 1971 (duties, powers and conditions of service). This Act was amended in 1976 to separate accounts from audit in the Central Government.

_ CAG audits the accounts related to all expenditure from the Consolidated Fund of India, consolidated fund of each state and consolidated fund of each union territory having Legislative Assembly.

_ He audits all expenditure from the Contingency Fund of India and the Public Account of India in both Central and State level.

_ He audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues, Government companies and other corporations and bodies when so required by related laws.

_ He advices the President with regard to the prescription of the form in which the accounts of the centre and the states shall be kept.

_ He submits his audit reports relating to the accounts of the Centre to President and relating to the accounts of a state to the Governor.

_ He compiles and maintains the accounts of the state governments as the separation of Central Governments’ accounts took place.

_ He audits all transactions of the Central and State governments related to debt, sinking funds, deposits, advances, suspense accounts and remittance business. He audits the accounts of any other authority also on a request of President or Governor.

_ CAG acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament

Some immunities enjoyed by the CAG

_ CAG is appointed by the President, but he does not hold office in accordance with Presidents’ pleasure. However the President can remove him in accordance with the procedure mentioned in the Parliament.

_ Once CAG ceases to hold his office, he become ineligible for further office.

 - The Parliament determines his salary and other service conditions.

_ The administrative expense of the office of CAG is charged upon the Consolidated Fund of India.

_ No minister can be called upon to take any responsibility for any action done by CAG. The Comptroller and Auditor General of India is not represented by any minister in the Parliament.