Full form of CAG – Comptroller and Auditor General

CAG is short for Comptroller and Auditor General. Under the Indian Constitution, the CAG is an independent authority. He is the head of India’s audit and accounts department and the country’s top fiscal watchdog. To Parliament and State Legislatures, and the people through them, it is the institution that ensures government and other public authorities’ accountability.

History of CAG

In 1858, the Accountant General’s Office was created (the year the British took over administrative control of India from the East India Company). The first Auditor General was appointed in 1860 and his name was Sir Edward Drummond.

The Auditor General of India was renamed the Auditor and Accountant General of the Government of India following a restructuring. The title was modified to Comptroller General of Accounts in 1866, and it was renamed Comptroller and Auditor General of India in 1884.

Due to statutory backing provided by the Government of India Act of 1919, the Auditor General became independent of the government. Adding provincial auditors general to a federal structure was part of the Government of India Act 1935, which further solidified the role of the auditor general in the Indian government.

This law spelled out how the Auditor General of India would be appointed and served, as well as giving a quick rundown of his responsibilities. It was established by the Accounts and Audits Order of 1936 that the auditor general was given comprehensive accounting and auditing duties to carry out.

This arrangement remained in place until 1947 when India gained its independence from the United Kingdom. Article 148 of the Indian Constitution of 1949 established a position of Comptroller and Auditor General to be appointed by the President of India after independence was achieved.

CAG Powers & Duties

In 1958, the CAG’s jurisdiction was expanded to include Jammu and Kashmir. In 1971, the then federal government of India passed the Comptroller and Auditor General Act. It talked about the Duties, Powers, and Conditions of Services of CAG. It was given responsibility for central and state government accounting and auditing as a result of the legislation.

In 1976, CAG was relieved of its accounting responsibilities. As Indian corruption has become more pervasive since the 1990s, CAG has remained vigilant, auditing and investigating some of the country’s worst and most contentious corruption scandals.

Drawing comparison with the British Version of CAG

It was only as an Auditor General in India, not as a Comptroller. However, in the United Kingdom, the CAG is both a Comptroller and an Auditor General.

When expenditure is made, an ex-post-facto audit is performed by the CAG in India. In the UK, no money can be taken from the public coffers without the CAG’s consent. CAG is not a member of parliament in India, but he is in the UK’s House of Commons.

What constitutional provisions are assigned to CAG?

• Article 148 covers the appointment of the CAG, as well as the oath and service conditions.
• The functions and powers of the Comptroller and Auditor-General of India are outlined in Article 149 of the Indian Constitution.
• The Union and State accounts must be kept in the form recommended by the President on the advice of the CAG as mentioned in article 150 of the Indian Constitution.
• By law, the reports of India’s CAG on the Union’s accounts are to be laid before each House of Parliament, as stipulated in Article 151 of the Constitution.
  Article 279 – The Comptroller and Auditor-General of India certifies the calculation of “net proceeds” and makes his or her findings final.
• In Section IV of the Third Schedule of the Indian Constitution, judges of the Supreme Court and the Comptroller and Auditor-General of India take an oath or affirmation when they assume office.
• According to the Sixth Schedule, District Council or Regional Council accounts must be maintained in the format prescribed by CAG with the approval of the President.

Aside from that, the financial statements of these organizations are audited in accordance with CAG’s judgment, and the Governor is notified of the results of the audits, who then present them to the Council.

What independent powers are given to the CAG?

The Constitution contains several provisions aimed at preserving the CAG’s autonomy. It is the President who appoints the CAG, who is given a six-year term or until he reaches the age of 65, whichever comes first.

A Supreme Court judge can be removed by the President only in accordance with the procedures outlined in the Constitution. Once he retires/resigns as a CAG, he will be ineligible to hold any public office in India or any state.

After he’s been appointed, his salary and benefits can’t be changed in a way that disadvantages him.

After discussing with him administrative authorities, the President specifies the terms of service for persons working in the Indian Audit and Accounts Department.

There is no vote on administrative costs incurred by the office of CAG. These costs are borne by the Consolidated Fund of India, which is not subject to change.