{"id":6658,"date":"2026-04-28T18:04:00","date_gmt":"2026-04-28T18:04:00","guid":{"rendered":"https:\/\/www.nextias.com\/blog\/?p=6658"},"modified":"2026-05-04T07:50:57","modified_gmt":"2026-05-04T07:50:57","slug":"comptroller-and-auditor-general-of-india","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/","title":{"rendered":"Comptroller and Auditor General of India (CAG): Roles, Functions"},"content":{"rendered":"\n<p>The <strong>Comptroller and Auditor General of India (CAG)<\/strong> is a <strong>constitutional body<\/strong> under<strong> articles 148-151<\/strong>. CAG serves as the friend, philosopher, and guide to the PAC (Public Accounts Committee). It is an independent supreme audit institution&nbsp; to <strong>audit <\/strong>the <strong>receipts <\/strong>and <strong>expenditures <\/strong>of the <strong>Central Government<\/strong>,<strong> State Governments<\/strong>, and <strong>other bodies<\/strong> that receive funding from the Government.<\/p>\n\n\n\n<p><strong>The first CAG of Independent India was V. Narhari Rao<\/strong> and currently serving CAG is <strong>Shri K. Sanjay Murthy<\/strong>. The tenure of CAG officials is 6 years or at the age of 65 years whichever is earlier. The <strong>Comptroller and Auditor General of India (CAG)<\/strong> currently serves as the <strong>External Auditor<\/strong> for major international bodies, including the <strong>World Health Organization (WHO)<\/strong> and the <strong>Food and Agriculture Organization (FAO)<\/strong>, the <strong>International Labour Organization (ILO)<\/strong>, and the <strong>International Atomic Energy Agency (IAEA)<\/strong>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_56_1 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#About_the_Comptroller_and_Auditor_General_of_India\" title=\"About the Comptroller and Auditor General of India\">About the Comptroller and Auditor General of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Constitutional_Provisions_Related_to_the_Comptroller_and_Auditor_General_of_India\" title=\"Constitutional Provisions Related to the Comptroller and Auditor General of India\">Constitutional Provisions Related to the Comptroller and Auditor General of India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Roles_and_Duties_of_CAG\" title=\"Roles and Duties of CAG\">Roles and Duties of CAG<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Functions_of_Comptroller_and_Auditor_General_of_India\" title=\"Functions of Comptroller and Auditor General of India\">Functions of Comptroller and Auditor General of India<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Constitutional_Provisions\" title=\"Constitutional Provisions\">Constitutional Provisions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Legal_Provisions\" title=\"Legal Provisions\">Legal Provisions<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Powers_of_CAG\" title=\"Powers of CAG\">Powers of CAG<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Reports_of_Comptroller_and_Auditor_General_of_India_CAG\" title=\"Reports of Comptroller and Auditor General of India (CAG)\">Reports of Comptroller and Auditor General of India (CAG)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Types_of_Audits_Conducted_by_the_CAG\" title=\"Types of Audits Conducted by the CAG\">Types of Audits Conducted by the CAG<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Comptroller_%E2%80%93_a_Misnomer_in_India\" title=\"Comptroller &#8211; a Misnomer in India\">Comptroller &#8211; a Misnomer in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Constitutional_Provisions_Ensuring_Independence_of_CAG\" title=\"Constitutional Provisions Ensuring Independence of CAG\">Constitutional Provisions Ensuring Independence of CAG<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Guardian_of_the_Public_Purse_%E2%80%93_Limitations_Challenges\" title=\"Guardian of the Public Purse &#8211; Limitations &amp; Challenges\">Guardian of the Public Purse &#8211; Limitations &amp; Challenges<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#FAQs_on_CAG\" title=\"FAQs on CAG\">FAQs on CAG<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#What_is_an_Audit_Board\" title=\"What is an Audit Board?\">What is an Audit Board?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#How_does_the_Comptroller_and_Auditor_General_of_India_get_appointed\" title=\"How does the Comptroller and Auditor General of India get appointed?\">How does the Comptroller and Auditor General of India get appointed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#What_oath_does_the_CAG_take_before_assuming_office\" title=\"What oath does the CAG take before assuming office?\">What oath does the CAG take before assuming office?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#What_is_the_term_of_office_for_the_CAG_of_India\" title=\"What is the term of office for the CAG of India?\">What is the term of office for the CAG of India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.nextias.com\/blog\/comptroller-and-auditor-general-of-india\/#How_can_the_CAG_resign_from_office\" title=\"How can the CAG resign from office?\">How can the CAG resign from office?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-398964ed5425945ea47d51cdde3c66d3\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"About_the_Comptroller_and_Auditor_General_of_India\"><\/span><strong>About the Comptroller and Auditor General of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Comptroller and Auditor General (CAG) is an independent authority established by the Constitution of India to <strong>audit <\/strong>the <strong>receipts <\/strong>and <strong>expenditures <\/strong>of the <strong>Central Government<\/strong>,<strong> State Governments<\/strong>, and <strong>other bodies<\/strong> that receive funding from the Government.\n<ul class=\"wp-block-list\">\n<li>Since it is established directly under the provisions of the Constitution, it is a <strong><a href=\"https:\/\/www.nextias.com\/blog\/constitutional-bodies\/\">Constitutional Body<\/a>.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The CAG is an <strong>All-India body<\/strong> in the sense that it controls the entire financial system of the country at both the Central and the State levels.<\/li>\n\n\n\n<li>The CAG <strong>heads <\/strong>the<strong> Indian Audit &amp; Accounts Department <\/strong>and acts as the Guardian of the Public Purse.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-04eb42899a476ec688e1f87ffac111a0\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Constitutional_Provisions_Related_to_the_Comptroller_and_Auditor_General_of_India\"><\/span><strong>Constitutional Provisions Related to the Comptroller and Auditor General of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>Article 148 to Article 151 of the Constitution of India <\/strong>deal with the provisions related to the Comptroller and Auditor General of India (CAG).<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><thead><tr><th>Article No.<\/th><th>Subject Matter<\/th><\/tr><\/thead><tbody><tr><td><strong>Article 148<\/strong><\/td><td>Comptroller and Auditor-General of India<\/td><\/tr><tr><td><strong>Article 149<\/strong><\/td><td>Duties and powers of the Comptroller and Auditor-General (CAG)<\/td><\/tr><tr><td><strong>Article 150<\/strong><\/td><td>Form of accounts of the Union and the States<\/td><\/tr><tr><td><strong>Article 151<\/strong><\/td><td>Audit Reports<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-88278c58887b3a156aac6a2b85c85f86\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Roles_and_Duties_of_CAG\"><\/span><strong>Roles and Duties of CAG<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>To uphold the Constitution of India<\/strong> and the <strong>laws <\/strong>of Parliament <strong>in<\/strong> the field of <strong>financial administration.<\/strong>\n<ul class=\"wp-block-list\">\n<li>This is the reason, that <strong>B.R. Ambedkar<\/strong> has called the CAG as <strong>one of the most important officers<\/strong> under the <a href=\"https:\/\/www.nextias.com\/blog\/constitution-of-india\/\"><strong>Constitution of India<\/strong><\/a>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The CAG has been envisaged as <strong>one of the four bulwarks of the democratic system of Government.<\/strong><\/li>\n\n\n\n<li><strong>To secure the accountability<\/strong> <strong>of the Executive<\/strong> to the Parliament in the sphere of financial administration through its audit reports.<\/li>\n\n\n\n<li>It acts as an <strong>agent of Parliament<\/strong> and conducts audits of expenditures on behalf of the Parliament.\n<ul class=\"wp-block-list\">\n<li>Therefore, he\/she is<strong> responsible only to the Parliament.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-9f83625313c36b7cfb07c8d9ac96d290\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Functions_of_Comptroller_and_Auditor_General_of_India\"><\/span><strong>Functions of Comptroller and Auditor General of India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-5e81833a5dc9004dc30f42897d301fe5\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Constitutional_Provisions\"><\/span><strong>Constitutional Provisions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Constitution of India has prescribed the following functions for the CAG:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Article 150<\/strong><\/td><td>He <strong>advises the President<\/strong> with regard to the prescription of the form in which the accounts of the Centre and the states shall be kept.<\/td><\/tr><tr><td><strong>Article 151<\/strong><\/td><td>He <strong>submits audit reports<\/strong> relating to the accounts of the <strong>Centre <\/strong>to the President, who shall, in turn, place them before both Houses of Parliament.<\/td><\/tr><tr><td><strong>Article 151<\/strong><\/td><td>He <strong>submits the audit reports<\/strong> relating to the accounts of a <strong>State <\/strong>to the Governor, who shall, in turn, place them before the State Legislature.<\/td><\/tr><tr><td><strong>Article 279<\/strong><\/td><td>He <strong>ascertains and certifies <\/strong>the <strong>net proceeds<\/strong> of any <strong>tax <\/strong>or <strong>duty<\/strong>.<br><strong>CAG\u2019s certificate in this regard is final.<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-5e29192f23e98af7f52f491f6a1c629d\" style=\"color:#ff6a00\"><span class=\"ez-toc-section\" id=\"Legal_Provisions\"><\/span><strong>Legal Provisions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Article 149<\/strong> of the Constitution of India <strong>authorizes the Parliament to prescribe the duties and powers<\/strong> of the Comptroller and Auditor General of India (CAG). Accordingly, the Parliament enacted the Comptroller and Auditor General of India (Duties, Powers, and Conditions of Service) Act of 1971.<\/p>\n\n\n\n<p>The <strong>functions <\/strong>of the Comptroller and Auditor General of India <strong>(CAG)<\/strong> as laid down under the act are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>He\/she <strong>audits <\/strong>the accounts related to <strong>all expenditures from the Consolidated Fund of India,<\/strong> the Consolidated Fund of <strong>each State,<\/strong> and the Consolidated Fund of <strong>each UT having a Legislative Assembly.<\/strong><\/li>\n\n\n\n<li>He\/she <strong>audits all transactions<\/strong> relating to the <strong>Contingency Fund of India, Public Account of India<\/strong> as well as the <strong>Contingency Fund of each State <\/strong>and the<strong> Public Account of each State.<\/strong><\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>all trading, manufacturing, profit and loss <strong>accounts<\/strong>, balance sheets, and other subsidiary accounts kept by<strong> any department<\/strong> of <strong>Central Government<\/strong> and <strong>State Governments.<\/strong><\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>the receipts and expenditures of <strong>all bodies and authorities substantially financed<\/strong> <strong>from <\/strong>the <strong>Central <\/strong>or <strong>State <\/strong>revenues.<\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>the accounts of <strong>all bodies and authorities receiving grants and loans from<\/strong> the <strong>Central <\/strong>and <strong>State <\/strong>Governments <strong>for specific purposes.<\/strong><\/li>\n\n\n\n<li>He\/she <strong>audits all receipts of <\/strong>the <strong>Centre <\/strong>and <strong>States <\/strong>and ensures that the rules and procedures in this regard are designed to secure an effective check on the assessment, collection, and proper allocation of revenue.<\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>the accounts of <strong>all stores and stock<\/strong> kept in all the <strong>offices <\/strong>and <strong>departments <\/strong>of the <strong>Central <\/strong>and <strong>State <\/strong>Governments.<\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>the accounts of all <strong>Government Companies<\/strong> in accordance with the provisions of the Companies Act.<\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>the accounts of all <strong>Corporations whose statutes provide for <\/strong>audit by him.<\/li>\n\n\n\n<li>He\/she <strong>audits <\/strong>the accounts of <strong>any other body or authority<\/strong> when <strong>requested by the President<\/strong> or <strong>Governor<\/strong>.\n<ul class=\"wp-block-list\">\n<li>For example, he\/she may be asked to conduct an audit of local bodies.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>He\/she acts as a <strong>guide, friend, and philosopher<\/strong> of the <strong>Public Accounts Committee <\/strong>of the Parliament.<\/li>\n\n\n\n<li>He\/she <strong>compiles and maintains<\/strong> the <strong>accounts of State<\/strong> Governments.\n<ul class=\"wp-block-list\">\n<li>Prior to 1976, the CAG used to <strong>compile and maintain <\/strong>the <strong>accounts of<\/strong> the <strong>Central <\/strong>Government as well. However,<strong> in 1976,<\/strong> he\/she was <strong>relieved of this responsibility<\/strong> due to the separation of accounts from audit.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-a010ea7c9882356c25552a2a199ec2a3\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Powers_of_CAG\"><\/span><strong>Powers of CAG<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In connection with the performance of his\/her audit duties, the Comptroller and Auditor General of India (CAG) has the following powers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>To inspect any office or department which is subject to his audit.<\/li>\n\n\n\n<li>To examine all transactions and question the person in charge of the office or department.<\/li>\n\n\n\n<li>To call for any records, papers, and documents from any audited entity.<\/li>\n\n\n\n<li>To decide the extent and manner of the audit.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"980\" height=\"530\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6.png\" alt=\"comptroller and auditor general of india\" class=\"wp-image-6666\" style=\"width:706px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6.png 980w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6-460x249.png 460w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6-768x415.png 768w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6-696x376.png 696w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6-777x420.png 777w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/blog\/uploads\/2024\/03\/1-6-150x81.png 150w\" sizes=\"auto, (max-width: 980px) 100vw, 980px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-778bca2e5db7ddf7deabe5ecc62cff40\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Reports_of_Comptroller_and_Auditor_General_of_India_CAG\"><\/span><strong>Reports of Comptroller and Auditor General of India (CAG)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Comptroller and Auditor General of India (CAG) <strong>submits three Audit Reports to the President:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Audit Report on Appropriation Accounts\n<ul class=\"wp-block-list\">\n<li><strong>Appropriation Accounts<\/strong> compare the actual expenditure with the expenditure sanctioned by Parliament through the Appropriation Act.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Audit Report on Finance Accounts\n<ul class=\"wp-block-list\">\n<li><strong>Finance Accounts<\/strong> show the annual receipts and disbursements of the Union Government.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Audit Report on Public Undertakings<\/li>\n<\/ul>\n\n\n\n<p>The <strong>President lays <\/strong>these <strong>reports before <\/strong>both Houses of <strong>Parliament<\/strong>. The <strong>Public Accounts Committee<\/strong>, then, <strong>examines <\/strong>these reports and <strong>reports <\/strong>its findings <strong>to<\/strong> the <strong>Parliament <\/strong>of India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-ea24706aeeb936a80e7707735ba094ca\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Types_of_Audits_Conducted_by_the_CAG\"><\/span><strong>Types of Audits Conducted by the CAG<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Comptroller and Auditor General of India (CAG) conducts various types of audits to ensure financial accountability and transparency in government expenditures. Here are the prominent types of audits conducted by the CAG:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><thead><tr><th>Type of Audit<\/th><th>Definition<\/th><th>Remarks<\/th><\/tr><\/thead><tbody><tr><td><strong>Legal and Regulatory Audit<\/strong><\/td><td>It ascertains whether <strong>money <\/strong>shown in the accounts as having been disbursed was <strong>legally available for and applicable to the service or<\/strong> <strong>purpose <\/strong>to which they have been applied or charged and whether the expenditure conforms to the authority that governs it.<\/td><td>This is <strong>obligatory <\/strong>on the CAG.<\/td><\/tr><tr><td><strong>Propriety Audit<\/strong><\/td><td>It looks into the <strong>wisdom, faithfulness, and economy of<\/strong> government <strong>expenditure <\/strong>and comments on the wastefulness and extravagance of such expenditure.<\/td><td>This is <strong>discretionary <\/strong>on the CAG.<\/td><\/tr><tr><td><strong>Performance Audit<\/strong><\/td><td>It looks into the <strong>economy, efficiency, and effectiveness in<\/strong> the <strong>receipt <\/strong>and <strong>application <\/strong>of public funds. It is a comprehensive appraisal of the progress and efficiency of the execution of development programs.<\/td><td>This is <strong>desirable, but not mandatory.<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-32189b2107a3647c8d2fdf70e5737d5a\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Comptroller_%E2%80%93_a_Misnomer_in_India\"><\/span><strong>Comptroller &#8211; a Misnomer in India<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Constitution of India visualizes the CAG to be a Comptroller as well as an Auditor General. However, in actual practice, the <strong>CAG of India <\/strong>is fulfilling the role of an <strong>Auditor-General only<\/strong> and <strong>not <\/strong>that of a <strong>Comptroller<\/strong>.\n<ul class=\"wp-block-list\">\n<li>This is because the CAG of India has <strong>no control over the issue of money<\/strong> from the Consolidated Fund as many departments are authorized to draw money by issuing cheques without specific authority from the CAG. The role of the CAG of India comes into play only at the audit stage when the expenditure has already taken place.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>In this respect, the <strong>CAG of India differs <\/strong>totally from the <strong>GAG of Britain<\/strong>.\n<ul class=\"wp-block-list\">\n<li>The <strong>CAG of Britain<\/strong> has powers of both the <strong>Comptroller <\/strong>as well as the <strong>Auditor General <\/strong>as the Executive of Britain can draw money from the public exchequer only with the approval of the CAG.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center has-black-color has-text-color has-link-color has-medium-font-size wp-elements-aab35b59e433885fb18b1611c1e90170\"><strong>The CAG of India vs the CAG of Britain<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background\" style=\"background-color:#ebecf0\"><thead><tr><th>Parameters<\/th><th>CAG of India<\/th><th>CAG of Britain<\/th><\/tr><\/thead><tbody><tr><td><strong>Role<\/strong><\/td><td>The CAG of India performs the role of an Auditor General only and not that of a Comptroller.<\/td><td>The CAG of Britain has the power of both the Comptroller as well as Auditor General.<\/td><\/tr><tr><td><strong>Audit Approach<\/strong><\/td><td>The CAG of India audits the accounts after the expenditure is committed i.e., ex post facto.<\/td><td>In the United Kingdom (UK), no money can be drawn from the public exchequer without the approval of the CAG of the UK.<\/td><\/tr><tr><td><strong>Parliamentary Role<\/strong><\/td><td>The CAG of India is not a Member of the Parliament.<\/td><td>The CAG of Britain is a Member of the House of Commons.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-ac9522da8d13fafb2e485d4a01ee760e\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Constitutional_Provisions_Ensuring_Independence_of_CAG\"><\/span><strong>Constitutional Provisions Ensuring Independence of CAG<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Constitution of India has made the following provisions to safeguard and ensure the independence of the Comptroller and Auditor General (CAG) of India:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Comptroller and Auditor General of India (CAG) has the <strong>security of tenure.<\/strong>\n<ul class=\"wp-block-list\">\n<li>He can be removed by the President only in accordance with the procedure mentioned in the Constitution.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>After the expiry of tenure as the CAG, he\/she is <strong>not eligible for further office,<\/strong> either under the Government of India or any State.<\/li>\n\n\n\n<li>The <strong>salary and other service conditions<\/strong> of the CAG are <strong>determined by<\/strong> the <strong>Parliament<\/strong>.\n<ul class=\"wp-block-list\">\n<li>According to the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act of 1971, the salary of the CAG is <strong>equal to that of a Judge of the Supreme Court.<\/strong><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Neither his <strong>salary <\/strong>nor his <strong>rights <\/strong>in respect of leave of absence, pension, or age of retirement <strong>can be altered to his disadvantage<\/strong> after his appointment.<\/li>\n\n\n\n<li>The <strong>conditions of service<\/strong> of persons serving in the <strong>Indian Audit and Accounts Department<\/strong> and <strong>administrative powers of the CAG<\/strong> are <strong>prescribed by<\/strong> the <strong>President after consultation with the CAG itself.<\/strong><\/li>\n\n\n\n<li>The <strong>administrative expenses<\/strong> including all salaries, allowances, and pensions of persons of the office of CAG are <strong>charged upon Consolidated Fund of India.<\/strong>\n<ul class=\"wp-block-list\">\n<li>Thus, they are <strong>not subject to the vote of Parliament.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group has-background\" style=\"background-color:#ebecf0\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center\"><strong>Removal of CAG<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\">The Comptroller and Auditor General of India (CAG) can be <strong>removed by the President<\/strong> of India on the <strong>same grounds<\/strong> and in the same <strong>manner <\/strong>as a <strong>judge of the Supreme Court<\/strong>. Thus, he\/she can be removed by the President based on a <strong>resolution <\/strong>passed to that effect by both Houses of <strong>Parliament <\/strong>with a <strong>special majority<\/strong>, either on the <strong>grounds of proved misbehavior or incapacity.<\/strong><\/p>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Guardian_of_the_Public_Purse_%E2%80%93_Limitations_Challenges\"><\/span><strong>Guardian of the Public Purse &#8211; Limitations &amp; Challenges<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-b09d1d6f884177f0371bf1d03c52e1a2\"><strong>Limitations<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Post-facto Role<\/strong>: The CAG of India has no control over the issuance of money from the public purse. Its role is limited to doing post-facto auditing of expenditures already made.\n<ul class=\"wp-block-list\">\n<li>This limits its role as the bulwark of financial accountability.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Limitations w.r.t. Inventory<\/strong>: CAG has more freedom w.r.t. audit of expenditure than w.r.t. audit of receipts, stores, and stock. In relation to expenditure, he\/she decides the scope of the audit and frames his own audit codes and manuals. Whereas, in relation to other audits, he has to proceed with the approval of the executive.<\/li>\n\n\n\n<li><strong>Limitations w.r.t. Certain Expenditures<\/strong>: The CAG has a limited role w.r.t. auditing Secret Service expenditures. In this regard, CAG cannot call for particulars of expenditure incurred by executive agencies and rather has to accept a certificate from the competent administrative authority.<\/li>\n\n\n\n<li><strong>Limitations w.r.t. Certain Organizations<\/strong>: The role of CAG in auditing public corporations and government companies is also limited.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-black-color has-text-color has-link-color wp-elements-e0173d27f474f9c21ef6bc4b1faff54c\"><strong>Challenges<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Limited Knowledge of Administration:<\/strong> Auditors do not know and cannot be expected to know very much about good administration. This leads to a narrow perspective and a very limited usefulness of CAG audits.<\/li>\n\n\n\n<li><strong>Increasing Complexity of Audits:<\/strong> Audits face rising complexity due to evolving forms of corruption and maladministration, posing challenges in effectively identifying and addressing such issues.<\/li>\n\n\n\n<li><strong>Expanding Responsibilities of CAG:<\/strong> Besides its traditional responsibility of overseeing the Central and State governments, the CAG now also examines various public-private partnership (PPP) projects, broadening its scope and responsibilities.<\/li>\n\n\n\n<li><strong>Fear of Biased Appointments:<\/strong> There is no clear criteria or procedure in the Constitution or the Statutes for the appointment of the CAG, leaving the executive branch with sole discretion in appointing a person of their choice. This creates a fear of biased appointments.<\/li>\n\n\n\n<li><strong>Practical Challenges:<\/strong> While the CAG holds the authority to inspect government offices and request necessary accounts for auditing purposes, the practical implementation often faces many obstacles such as delay in obtaining necessary documents, lack of cooperation from the government officials, complexity in detecting corruption, and maladministration in the offices, etc.<\/li>\n\n\n\n<li><strong>Delayed Access to Records:<\/strong> Crucial documents are frequently withheld until the conclusion of audit programs, impeding the auditors&#8217; ability to conduct thorough and timely examinations.<\/li>\n\n\n\n<li><strong>Tenure Limitations:<\/strong> Though the Constitution provides for a six-year term, the imposition of a retirement age of 65 shortens the effective tenure of successive CAGs. This hampers institutional continuity and expertise.<\/li>\n\n\n\n<li><strong>Allegations of Biased Auditing:<\/strong> Recent CAG audits have faced criticism for inflated loss estimates or unrealistic figures, underscoring the importance of stringent adherence to audit standards to maintain integrity and credibility.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group has-background\" style=\"background-color:#ebecf0\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"has-text-align-center has-black-color has-text-color has-link-color wp-elements-764bdb90becac737f6e29d2a3257f234\"><strong>Suggested Measures<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A collegium-type mechanism for the appointment of the CAG can be established to ensure independence and meritocracy in the selection process of the CAG.<\/li>\n\n\n\n<li>The CAG Act of 1971 should be amended appropriately to align its provisions with contemporary governance practices and challenges.<\/li>\n\n\n\n<li>Capacity building through professional training w.r.t. emerging issues that are critical such as Sustainable Development Goals and the Goods and Services Tax (GST), etc.<\/li>\n\n\n\n<li>To improve transparency and efficiency, auditors should be granted priority access to records within seven days, with department heads required to provide explanations for any delays.<\/li>\n\n\n\n<li>All Private-Public Partnerships (PPPs), Panchayati Raj Institutions, and government-funded societies should be brought under the audit purview of the CAG ensuring greater transparency and accountability in these institutions.<\/li>\n<\/ul>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-1ba26816a4b696f5145417d32f4818fd\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In conclusion, the <strong>Comptroller and Auditor General (CAG) of India <\/strong>stands as a crucial pillar of financial transparency and accountability. As India continues on its path of economic development and social progress, the role of the CAG of India will continue to remain indispensable. Taking the necessary steps to address the limitations and challenges faced by it will go a long way in fostering good governance in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-fe666794a10d342c64538c6b01d074db\" style=\"color:#015aa7\"><span class=\"ez-toc-section\" id=\"FAQs_on_CAG\"><\/span><strong>FAQs on CAG<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1711108919974\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_an_Audit_Board\"><\/span><strong>What is an Audit Board?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An Audit Board was established as part of the office of CAG to associate outside specialists and experts to handle the technical aspects of audit of specialized enterprises like engineering, chemicals, etc. This board was established on the recommendations of the Administrative Reform Commission (ARC).<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1777362021734\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_does_the_Comptroller_and_Auditor_General_of_India_get_appointed\"><\/span><strong>How does the Comptroller and Auditor General of India get appointed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The Comptroller and Auditor General of India is appointed by the <strong>President of India<\/strong> by warrant under his hand and seal.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1777362064148\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_oath_does_the_CAG_take_before_assuming_office\"><\/span><strong>What oath does the CAG take before assuming office?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>CAG takes oath before the President to uphold the Constitution, bear true allegiance, perform duties faithfully without fear or favor, maintaining India&#8217;s sovereignty and integrity.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1777362094719\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_term_of_office_for_the_CAG_of_India\"><\/span><strong>What is the term of office for the CAG of India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>CAG serves <strong>6 years or till age 65<\/strong>, whichever earlier, as per the Comptroller and Auditor General of India (Duties, Powers, and Conditions of Service) Act of 1971 ensuring independence from political pressure.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1777362142942\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_can_the_CAG_resign_from_office\"><\/span><strong>How can the CAG resign from office?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>CAG can resign anytime by submitting a resignation letter directly to the President of India, maintaining constitutional independence.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The Comptroller and Auditor General of India (CAG), a constitutional body, stands as a bulwark of financial oversight and accountability. 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