CAG of India

The Constitution (Article 148) provides for an independent office of the CAG. He is the head of the Indian Audit and Accounts Department and the guardian of the public purse (Centre & States).

Independence:

• Appointed by President.
• Holds office for 6 years or up to 65 years of age.
• Can be removed by President same as a SC judge (Special majority in Parliament for misbehaviour/incapacity).
• Not eligible for further office under Government of India or any State.

CAG's duties are prescribed by the CAG (Duties, Powers and Conditions of Service) Act, 1971.

• Audits accounts related to all expenditure from the Consolidated Fund, Contingency Fund, and Public Account of India and of each State/UT.
• Audits all trading, manufacturing, profit and loss accounts, balance sheets of Central/State govt departments.
• Audits Government Companies and corporations (where required by law).

Note: In 1976, CAG was relieved of accounting functions of the Central Government (separation of audit and accounts). CAG only audits Centre, but compiles AND audits for States.

CAG submits 3 audit reports to the President:

1. Audit report on appropriation accounts
2. Audit report on finance accounts
3. Audit report on public undertakings.

The President lays these before both Houses of Parliament. The Public Accounts Committee (PAC) then examines them. The CAG acts as a guide, friend, and philosopher to the PAC.