- Provisions regarding Comptroller and Auditor General (CAG) are mentioned under Part V and Articles 148-151.
- The C&AG's Act, 1971 regulates the duties, powers and conditions of service of the Comptroller and Auditor General.
• The Comptroller and Auditor-General of India is appointed by the President of India on the recommendation of Prime Minister.
• He is appointed for 6 yrs or 65yrs of age whichever is earlier.
• He is the custodian of the Public Purse, controlling the entire financial system of the Country-the Union and the States.
• He audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.
• He is also the external auditor of government-owned companies.
• He prescribes the form and manner in which the accounts of the Union and the States shall be kept, subject to the approval of the President.( Article 150)
• The reports of the Comptroller and Auditor General relating to Accounts of Union are submitted to the President who causes them to be laid before the Parliament.
• The reports of the Comptroller and Auditor General relating to Accounts of States are submitted to the Governor of the state, who causes them to be laid before the state Legislature.
• These reports of the CAG are then referred to the Public Accounts Committees, which are special committees in the Parliament and the State legislatures.
• The discussion in Parliament or State Legislature takes place on the basis of Public Accounts Committees reports.
• While conducting audit, the Comptroller and Auditor-General ensure:
(a) That the financial rules and orders are obeyed while expenditure; and
(b) That those who sanction expenditure have the power to do so.
Comptroller is one who has control over the treasury. The term CAG was taken from British system where the CAG has to countersign to make withdrawals from treasury. In India, the CAG has no control over the issue of money from consolidated fund of India or States. He came into action only when expenditure has taken place. So, in effect the Indian CAG is only AG. CAG is misnomer in Indian context.
The CAG is also the head of the Indian Audit and Accounts Department.
The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence.
Oath of affirmation
On appointment, he has to make an oath of affirmation before the President of India that, he will bear true faith and allegiance to the Constitution of India, uphold the sovereignty and integrity of India and perform the duties of his office without fear or favour.
Safeguards for impartiality:
• He shall be removed in the same manner and grounds as a Judge of the Supreme Court.
• The salary and other benefits cannot be varied to his disadvantage after his appointment except in Financial Emergency.
• The CAG of India shall be ineligible for further appointment under the Government of India or Government of any State after he has ceased to hold his office.
• The CAG can be removed only on an address from both the Houses of the Parliament on the ground of proved misbehavior or incapacity.
• His salary and allowances are charged upon the Consolidated Fund of India and are non-votable in the Parliament.
List of Comptrollers and Auditors General of India
No. C AG of India tenure began tenure ended
1 V. Narahari Rao 1948 1954
2 A. K. Chanda 1954 1960
3 A. K. Roy 1960 1966
4 S. Ranganathan 1966 1972
5 A. Bakshi 1972 1978
6 Gian Prakash 1978 1984
7 T. N. Chaturvedi 1984 1990
8 C. G. Somiah 1990 1996
9 V. K. Shunglu 1996 2002
10 V. N. Kaul 2002 2008
11 Vinod Rai 2008 2014