Syllabus: GS2/Indian Polity; Constitutional Body
Context
- Recently, the Vice-President of India lauded the Comptroller and Auditor General (CAG) as the ‘guardian of the public purse’ during the 5th Audit Diwas celebration, commemorating the establishment and legacy of CAG.
About
- Origins of India’s Audit Institution: The Supreme Audit Institution (SAI) of India is among India’s oldest governance bodies.
- Its origins date back to 1858, when a dedicated department led by an Accountant General was created.
- It was responsible for maintaining accounts and auditing financial transactions of the East India Company.
- Government of India Act, 1858: It brought a new system of presenting an annual budget of Imperial Income and Expenditure (1860), laying the foundation for Imperial Audit.
- First Auditor General: Sir Edward Drummond became the first Auditor General of India on 16 November 1860, marking a formal beginning of institutionalized auditing in India.
- Since then, ‘November 16’ is celebrated as Audit Diwas.
- First Auditor General: Sir Edward Drummond became the first Auditor General of India on 16 November 1860, marking a formal beginning of institutionalized auditing in India.
- Evolution After Independence: The Comptroller and Auditor General (CAG) of India was recognized as a constitutional authority with the adoption of the Constitution of India in 1950.
- The responsibilities and authority of the CAG evolved through various practices and legislative changes, both during British rule and in post-independence India, strengthening its role as a guardian of public accountability.
Highlights of 5th Audit Diwas (2025)
- Theme: ‘Guardian of the Public Purse’, marking the 166th year of the CAG’s institution.
- From ‘Examination’ to ‘Partner in Governance’: The audit processes aim to support good governance and strengthen executive accountability, and to become ‘a forward-looking instrument of reform, foresight, and innovation’.
- Pillars of Transformation: Stakeholder Engagement, Digital Transformation, Alignment with Viksit Bharat 2047, and Capacity Building.
- Urban Governance and ‘Ease of Living’ Audits: CAG K. Sanjay Murthy announced plans to assess 101 major cities on infrastructure; environmental sustainability; and local economic growth;
- It marks a shift toward citizen-centric auditing, focusing on urban development and service delivery.
| About Comptroller and Auditor General (CAG) of India – Constitutional Mandate: Article 148, which guarantees CAG’s independence and authority. The CAG is tasked with: 1. Auditing all receipts and expenditures of the Union Government and the State Governments. 2. Reviewing accounts of bodies and authorities substantially financed by the government. 3. Reporting audit findings to the President of India or Governor of respective states, which are then tabled in Parliament or State Legislatures. – Vision and Values: The CAG’s mission is to promote accountability, transparency, and good governance through high-quality auditing. Its core values include Integrity, Objectivity, Professional Excellence and Public Interest. – Types of Audits: 1. Compliance Audit: Ensures adherence to rules and regulations. 2. Financial Audit: Verifies accuracy of financial statements. 3. Performance Audit: Evaluates efficiency and effectiveness of government programs. 4. Environmental Audit: Assesses ecological impact of public projects. (a). These audits are conducted through a nationwide network of State Audit Offices and specialized wings. – Advisory and Governance Functions: The CAG chairs the Government Accounting Standards Advisory Board (GASAB), which develops accounting norms for public sector entities. 1. It convenes the Audit Advisory Board, comprising experts from various fields to refine audit methodologies. – New Initiatives by CAG: The CAG has approved the creation of two new specialized cadres, aimed to be operational from January 1, 2026, within the Indian Audit and Accounts Department (IA&AD): 1. Central Revenue Audit (CRA) Cadre; 2. Central Expenditure Audit (CEA) Cadre; International Engagement – The CAG of India is an active member of the International Organization of Supreme Audit Institutions (INTOSAI), contributing to global standards in public auditing. – It undertakes international audits and collaborates with other SAIs for capacity building. |
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