Comptroller and Auditor General of India CAG – GK Notes

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In India, Comptroller and Auditor General (CAG) is the senior civil servant who examine and improve the government accountability and present the report to the parliament.

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.

GK NameComptroller and Auditor General
Established1858
Referring ArticleArticle 148 of COI
Term6 yrs / up to 65 yrs of age (whichever is earlier)
Salary ₹250,000 / month
Nominator/AppointerThe President of India
Official Websitewww.cag.gov.in

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.
  • Article 148: This article establishes the office of the Comptroller and Auditor General of India. It states that there shall be a CAG of India who shall be appointed by the President of India.
  • Article 149: Article 149 outlines the duties and powers of the CAG. It specifies that the CAG shall perform the following functions:
  • Article 150: This article deals with the form of accounts of the Union and states. It requires the CAG to prescribe the form in which the accounts of the Union and states shall be kept.
  • Article 151: Article 151 deals with the reports of the CAG. It mandates the CAG to submit reports on the accounts of the Union and states to the President, who shall cause them to be laid before the Parliament and state legislatures.
  • Article 279: This article allows the CAG to make regulations regarding the maintenance of accounts and audit of the accounts of the Union and states.
  • Article 280: This article empowers the CAG to audit the accounts of any body or authority that is substantially financed by the government.
  • Article 282: Article 282 allows the CAG to audit the accounts of bodies or authorities established by law made by Parliament or the state legislatures, if the accounts of such bodies or authorities are subject to the examination of the CAG.
  • Article 283: This article deals with the custody of the Consolidated Funds of India and the Contingency Fund of India, and it ensures that these funds are under the control and audit of the CAG.
  • Article 284: Article 284 allows the CAG to audit the accounts of the states, including the Consolidated Fund of each state and the Contingency Fund of each state.

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.

Common GK on CAG:

  • Article 148 of the Indian Constitution deals with the Comptroller and Auditor General of India.
  • The Comptroller and Auditor General is the head of the Indian Audit and Accounts Services.
  • The Comptroller and Auditor General is the guardian of the finances of India. Its job is to monitor all the expenditures, income, and all kinds of accounts of the Center and the State government.
No.CAGTenure
1V. Narahari Rao1948 – 1954
2A. K. Chanda1954 – 1960
3A. K. Roy1960 – 1966
4S. Ranganathan1966 – 1972
5A. Bakshi1972 – 1978
6Gian Prakash1978 – 1984
7T. N. Chaturvedi1984 – 1990
8C. G. Somiah1990 – 1996
9V. K. Shunglu1996 – 2002
10V. N. Kaul2002 – 2008
11Vinod Rai2008 – 2013
12Shashi Kant Sharma2013 – 2017
13Rajiv Mehrishi2017 – 2020
14G. C. Murmu2020 – present
List of Comptroller and Auditor General of India

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?

Download CAG India GK Notes PDF