Comptroller and Auditor General of India CAG – GK Notes

Comptroller and Auditor General of India UPSC SSC

Shri Girish Chandra Murmu is the Comptroller and Auditor General of India since 8th August 2020.

Appointments of CAG: Under Article 148 of the Indian Constitution, the prime minister is nominated and the President appoints the Auditor General of India. The Auditor General of India will audit the accounts of the Center, the States, as well as other authorities and submit them to Parliament.

Terms of Office of CAG: The term of office of the Comptroller and Auditor General is 6 years or 65 years of age. However, he can submit his resignation letter to the President before the end of his term. He may also be removed by impeachment proceedings.

Salary of CAG: According to the constitution, the salaries and allowances of the Comptroller and Auditor General are determined by Parliament. His salary and allowances are determined from the consolated funds of India. At present (2021), the salaries of the comptroller and auditor general of India are approximately ₹250,000 (US$3,500) per month.

Structure of CAG’S Office

1. Comptroller and Auditor General (CAG): The CAG is the head of the office and is responsible for overall leadership, direction, and decision-making.
2. Deputy Comptroller and Auditor General (Deputy CAG): The Deputy CAG assists the CAG in various administrative and operational matters. There are usually several Deputy CAGs who oversee different functional areas within the CAG’s office.
3. Principal Director Generals (PDGs): These wings focus on different aspects of auditing, such as financial audit, performance audit, compliance audit, and more.
4. Director Generals (DGs): They oversee specific functions and areas of audit and report to the PDGs.
5. Additional Deputy Comptroller and Auditor General (ADeCAG): ADeCAGs are responsible for overseeing audit work related to specific areas, such as defense, railways, and revenue.
6. Accountant Generals (AGs): Accountant Generals are responsible for auditing the accounts and financial transactions of state governments and union territories. Each state and union territory typically has its own AG.
7. Senior Deputy Accountant Generals (Sr. DAGs): Sr. DAGs assist the AGs in the audit work related to state governments and union territories.
8. Deputy Accountant Generals (DAGs): DAGs are responsible for conducting audits at the district and department levels within a state or union territory.
9. Assistant Accountant Generals (AAGs): AAGs are responsible for conducting audits at the lower levels within a state’s government departments.
10. Specialized Audit Teams: The CAG’s office may have specialized audit teams or task forces to handle specific audit requirements, investigations, or special audits.
11. Information Technology (IT) Division: Given the increasing role of technology in auditing, the CAG’s office has an IT division that focuses on using technology for more efficient and effective audits.
12. Training and Research: The CAG’s office may have a training and research wing responsible for the development of auditors and researchers in the field of auditing and financial management.

Functions of CAG:

The Comptroller and Auditor General (CAG) of India performs several important functions to ensure financial accountability, transparency, and good governance in the government. Here are the key functions of the CAG of India:

1. Audit of Government Accounts: The primary function of the CAG is to audit the accounts related to the receipts and expenditures of the Government of India and the state governments. This includes auditing the financial transactions, statements, and records of various government departments, ministries, and agencies.
2. Expenditure Audit: The CAG examines whether government expenditures were made in accordance with laws, regulations, and financial procedures. It ensures that public funds are spent efficiently and for their intended purposes.
3. Revenue Audit: The CAG reviews revenue transactions to ensure that all revenue due to the government has been collected, and that there are no revenue leakages or irregularities.
4. Performance Audit: In addition to financial audits, the CAG conducts performance audits to evaluate the efficiency, effectiveness, and impact of government programs and policies. This helps identify areas for improvement in the delivery of public services.
5. Value for Money Audit: The CAG assesses whether government spending represents value for money, taking into consideration the cost-effectiveness of programs and projects.
6. Environmental Audit: In recent years, the CAG has expanded its scope to include environmental audits, where it examines whether government agencies are complying with environmental regulations and promoting sustainable practices.
7. Audit Reports: The CAG submits audit reports to the President of India, Governors of states, and legislatures (Parliament and state legislatures). These reports highlight findings, financial irregularities, deficiencies, and recommendations for corrective action.
8. Advice to Government: The CAG provides expert advice to the government on financial matters, helping it improve financial management, fiscal policies, and governance.
9. Parliamentary Oversight: The audit reports prepared by the CAG are examined by the Public Accounts Committee (PAC) in Parliament and similar committees in state legislatures. These committees ensure that the government is held accountable for its financial management and actions.
10. Autonomy and Independence: The CAG’s office is constitutionally independent and autonomous. The CAG is appointed by the President and can only be removed through a process of impeachment, ensuring independence in performing audit functions.
11. Special Audits: The CAG can conduct special audits or investigations when it suspects financial irregularities or misconduct in government operations.

Audit Jurisdiction

Under the CAG’s DPC Act, the Comptroller and Auditor General have the authority:

• To examine any accounting office managed by the Union, a State, or a Union Territory with a legislative assembly;
• To require that any accounts, books, papers, and other documents related to the transactions pertaining to his duties be sent to such location as he may designate for inspection.
• To ask the person in charge of the office any questions or observations he feels are necessary, and to request any information he might need for the compilation of any accounts or reports that come under his purview.
• finding out if the funds listed in the accounts as having been disbursed were legitimately available for and appropriate to the service or purpose for which they have been applied or charged.
• whether the expenditure complies with the governing authority;

Public Accounts Committee (PAC)

1. Constitutional Basis: The PAC is one of the parliamentary committees mentioned in Article 148 of the Indian Constitution. It is constituted under the provisions of Article 151.
2. Composition: The PAC is a committee of Parliament and is typically composed of members of the Lok Sabha (House of the People). The Lok Sabha Speaker appoints the PAC’s chairman, who is usually a member of the opposition party.
3. Functions: The primary function of the PAC is to examine the audit reports prepared by the CAG. It reviews the findings, observations, and recommendations made by the CAG in its reports.
4. Report to Parliament: After a thorough examination of the CAG’s reports and discussions with concerned officials, the PAC prepares a report. This report is presented to Parliament (Lok Sabha) for discussion and approval.
5. Recommendations: The PAC can make recommendations to the government based on its findings. These recommendations may include corrective measures to address financial irregularities or inefficiencies.

UPSC Sample Questions for Main

Discuss the significance of the Comptroller and Auditor General (CAG) in ensuring financial accountability and transparency in the Indian government. How does the CAG fulfill its constitutional mandate?

Assess the role of the Public Accounts Committee (PAC) in scrutinizing the reports and recommendations of the Comptroller and Auditor General (CAG). How does the PAC contribute to enhancing financial accountability in India?

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