The Prime Minister recently unveiled a statue of Sardar Vallabhbhai Patel at the Comptroller and Auditor General (CAG) office in India to mark the First Audit Diwas on 16th November 2021. The event celebrates the historical roots of the CAG, aiming to shed light on its rich contributions towards enhancing transparency and promoting good governance. Girish Chandra Murmu assumed the role of the Comptroller and Auditor General of India on 8th August 2020.
Understanding the Constitutional Body: CAG
Outlined in Article 148 of the Constitution, the CAG operates as an independent entity and serves as the supreme audit institution of India. Providing comprehensive financial oversight, it is regarded as the guardian of the public purse and manages the entire fiscal system of both the Centre and the states.
The CAG’s Appointment and Tenure
The President of India, by an official warrant, appoints the CAG, who serves for six years or until they reach 65 years of age, whichever is earlier. Interestingly, the President can also remove the CAG, a process which closely resembles the removal of a Supreme Court Judge.
Provisions Governing the CAG
Upon conclusion of the tenure, the CAG is not eligible for further office either under the Government of India or any state. Furthermore, the Parliament determines their salary and other service conditions. The administrative expenses, including salaries, allowances, and pensions of all serving staff at the office of the CAG, are charged on the Consolidated Fund of India.
Duties & Powers of the CAG
In accordance with the CAG’s (Duties, Powers and Conditions of Service) Act of 1971, the CAG audits accounts related to all expenditure from the Consolidated Fund of India, each state’s consolidated fund, and the consolidated fund of each union territory with a Legislative Assembly. They audit profit and loss accounts, balance sheets, and other subsidiary accounts maintained by any Central Government and state government department.
Limitation of the CAG
The Constitution visualizes the CAG as both Comptroller and Auditor General. However, in practice, the CAG functions as an Auditor-General only, without controlling the issuance of money from the consolidated fund. In this aspect, the CAG of India differs significantly from the CAG of Britain, who has powers of both Comptroller and Auditor General. Therefore, in Britain, the executive can draw money from the public exchequer only with the approval of the CAG.
