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:
- Article 148: Establishes the office of the CAG; appointed by the President.
- Article 149: Parliament determines duties and powers.
- Article 150: Accounts format of Union and States prescribed by the President on advice of CAG.
- Article 151: CAG reports submitted to the President/Governor and laid before Parliament/State Legislature.
- 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:
Aspect | India | Britain |
Role | Only Auditor | Comptroller + Auditor |
Audit Timing | Post-expenditure (ex-post facto) | Pre-approval required |
Membership | Not a member of Parliament | Member of House of Commons |
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