Comptroller and Auditor General (CAG) of India

Why in News?

A Comptroller and Auditor General (CAG) report tabled in Lok Sabha flagged lapses worth ₹573 crore in Indian Railways, citing revenue shortfalls, project execution failures, and underutilized assets, including unrecovered licence fees, shunting charges, and idle Nilgiri Mountain Railway coaches.

Description:

Constitutional Provisions:

  1. Article 148: Establishes the office of the CAG; appointed by the President.
  2. Article 149: Parliament determines duties and powers.
  3. Article 150: Accounts format of Union and States prescribed by the President on advice of CAG.
  4. Article 151: CAG reports submitted to the President/Governor and laid before Parliament/State Legislature.
  5. Article 279: Certifies net proceeds of taxes/duties – certificate is final.

CAG (Duties, Powers & Conditions of Service) Act, 1971:

  • Tenure: 6 years or until 65 years, whichever is earlier.
  • Removal: Like a Supreme Court judge.
  • Salary: Determined by Parliament; not subject to variation after appointment.
  • Resignation: Addressed to the President.
  • Expenditure: Charged on the Consolidated Fund of India (CFI).

Duties & Powers:

  • Audits expenditure from:
    • Consolidated Fund (Centre, States, UTs)
    • Contingency Fund and Public Accounts of India/States
  • Audits government departments’ accounts: trading, manufacturing, balance sheets, debt, suspense accounts, etc.
  • Audits other bodies: When requested by the President or Governor (e.g., local bodies, PPPs).
  • Advises on the form of government accounts.
  • Submits reports to:
    • President (for Union) → laid before Parliament.
    • Governor (for States) → laid before the State Legislature.

Role in Public Accounts Committee (PAC):

  • Submits 3 audit reports:
    • Appropriation Accounts
    • Finance Accounts
    • Public Undertakings
  • Acts as guide, friend, and philosopher to PAC.
  • Ensures accountability of the executive in financial matters.

CAG – India vs Britain:

AspectIndiaBritain
RoleOnly AuditorComptroller + Auditor
Audit TimingPost-expenditure (ex-post facto)Pre-approval required
MembershipNot a member of ParliamentMember of House of Commons

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