Comptroller and Auditor General (CAG)

The Comptroller and Auditor General (CAG) is a constitutional authority established under Article 148 of the Indian Constitution.
The CAG is responsible for auditing the accounts of the Union and State governments and public sector undertakings (PSUs).
The CAG is considered the guardian of public finances in India.
The CAG is appointed by the President of India for a term of 6 years or until the age of 65 years, whichever is earlier.
The CAG can only be removed from office in a manner similar to a Supreme Court judge, ensuring its independence.
The CAG audits all receipts and expenditures of the Union and State governments, including those of autonomous bodies and authorities.
It is responsible for auditing transactions related to the Contingency Fund and Public Account of India.
The CAG prepares and submits audit reports to the President or the Governor, which are then tabled in the respective legislatures.
The CAG has the authority to audit the financial transactions of institutions funded by the government.
The CAG’s reports play a crucial role in ensuring accountability in governance and administration.
The CAG performs three types of audits: Financial audit, Compliance audit, and Performance audit.
Financial audits verify the accuracy of financial statements.
Compliance audits ensure that transactions adhere to relevant laws, rules, and regulations.
Performance audits assess the efficiency and effectiveness of government schemes and programs.
The CAG’s audits help in identifying instances of corruption and misuse of public funds.
Its findings are crucial for the functioning of parliamentary committees like the Public Accounts Committee (PAC) and the Committee on Public Undertakings.
The CAG is referred to as the “watchdog of public finance” in India.
The office of the CAG ensures the proper utilization of funds allocated by the legislature.
The CAG’s reports have led to several landmark decisions and reforms in India’s governance.
The autonomy and independence of the CAG are vital for ensuring transparency and accountability.
The CAG also audits accounts of companies where the government holds more than 51% stake.
The institution is crucial for monitoring the implementation of policies and programs funded by the government.
The CAG plays a significant role in fiscal management by highlighting instances of fiscal indiscipline.
The CAG is assisted by a team of auditors and professionals, ensuring comprehensive audits.
Its reports form the basis for parliamentary debates on financial matters.
The Constitution prohibits the CAG from performing any executive duties, preserving its neutrality.
The CAG is a critical component of India’s system of checks and balances.
The institution’s recommendations are often used to improve governance and policy-making.
The CAG audits defense accounts, including purchases and expenditures, ensuring transparency in sensitive areas.
The CAG’s performance audits have highlighted inefficiencies in several government schemes.
The Constitution ensures the CAG’s independence by charging its expenses to the Consolidated Fund of India.
The CAG also audits the accounts of municipal corporations and panchayati raj institutions.
The office plays a role in ensuring the proper implementation of financial devolution under the Finance Commission.
The CAG’s work complements the efforts of anti-corruption bodies and investigative agencies.
The CAG’s role is often compared to that of similar institutions in other countries, like the UK’s National Audit Office.
The CAG has faced challenges in accessing certain records and ensuring compliance by audited entities.
The institution emphasizes the importance of adopting modern technologies and practices in auditing.
The CAG’s reports have often led to judicial interventions and public awareness on key issues.
The office of the CAG is a cornerstone of India’s democratic framework.
The institution is instrumental in ensuring that public funds are used efficiently and effectively.