POLITY

CAG

“Comptroller and Auditor General of India is the most important Officer under the
Constitution of India, for he is the guardian of the public purse.”

- Dr B R Ambedkar

Breaking Down the Basics

The Comptroller and Auditor General of India is the supreme audit institution of India – a.k.a. CAG of India.
Apex authority responsible for external and internal audits of the expenses of the National and state governments.
He is the head of the Indian Audit and Accounts Department
Article 148 provides for the Comptroller and Auditor General of India who controls the entire financial system of the country.

Current Affairs POI –

Recently CAG appeared in the news because of its report on functioning of Delhi Police carried out between 2013-2019.
CAG said that the Union home ministry “had approved 12,518 posts with advice to operationalize 3,139 posts first and then the remaining 9,379 after deployment of 3,139 personnel on ground.
However, due to failure of Delhi Police to recruit against these 3,139 posts, the remaining 9,379 approved posts could not be operationalized (August 2020).”

Features of Office of CAG

For more detailed information click here.

Duties and Powers

To uphold the Constitution of India and the laws of Parliament in the field of financial administration.
To audit and report on –
Expenditure from the Consolidated Fund of India, consolidated fund of each state and consolidated fund of each union territory having a Legislative Assembly.
Expenditure from the Contingency Fund of India and the Public Account of India as well as the contingency fund and the public account of each State.
Trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and State governments.
Receipts and expenditure of the Centre and each state to satisfy himself that the rules and procedures in that regard are designed to secure an effective check on the assessment, collection and proper allocation of revenue.
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.
Accounts of any other authority when requested by the President or Governor.
E.g. the audit of local bodies.
Advises the President with regard to prescription of the form in which the accounts of the Centre and the states shall be kept (Article 150).
Submits his audit reports relating to the accounts of the Centre/States to President/ Governor, who shall, in turn, place them before the Parliament/State legislature
Ascertains and certifies the net proceeds of any tax or duty (Article 279).
Compiles and maintains the accounts of state governments
Acts as a guide, friend and philosopher of the Public Accounts Committee of the Parliament.

Constitutional Provisions Related to Office of CAG of India

Some Important Audit Reports