Comptroller and Auditor General of India (CAG) : History, Appointment, Oath, Tenure, Duties and Powers

History of CAG

• This post in India is a gift from Britain.
• The British government established the “Indian Audit and Account” department in India.
• The officer appointed to this department was called ‘Auditor General’, who was appointed by the Secretary of India.
• In 1860 AD, Edmund Drummond was made the first Accountant General of India.
• The tenure of the Accountant General was till the pleasure of the British Emperor.
• In 1884 AD, the name of the post of Accountant General was changed to “Controller and Auditor General” (CAG).
• In the Government of India Act of 1935, the British Crown appointed ‘Controller and Auditor General’ (CAG) at the national level and ‘Accountant General’ at the state level.
• When the Constitution came into force in 1950 AD, only the post of CAG was kept in India.

General information about CAG

• CAG : Comptroller and Auditor General
• This is a one member commission.
• It is the supreme audit Institution of India.
• Provisions : Part 5 and Articles 148 to 151 of the Constitution.

Article 148 : CAG of India

• Article 148 : Composition of the Commission like- it is a one member commission.
• Article 148 (1) : CAG’s appointment, tenure, resignation, removal process
  • Appointment : CAG is appointed by the President.
  • Tenure : The tenure of CAG is 6 years or 65 years of age, whichever is earlier.
  • Resignation : CAG gives his resignation to the President.
  • Removal procedure : The procedure for removing CAG from the post is the same as that of a Supreme Court judge.
• Article 148 (2) : Oath of CAG
  • Oath : The oath to CAG is administered by the President as per the third schedule.
• Article 148 (3) : Salary and service conditions of CAG
  • The salary and service conditions of CAG are determined by the Parliament as per the second schedule.
  • The salary of CAG is the same as that of a Supreme Court judge.
  • The current salary of CAG is Rs 2.5 lakh.
  • The salary of CAG is charged on the Consolidated Fund of India.
• Article 148 (4) : The CAG shall not be eligible to hold any post under the Central or State Government after retirement.
• Article 148 (5) : The service conditions of the employees of the Audit and Accounts Department are determined by the President in consultation with the CAG.
• Article 148 (6) : The administrative expenses of the CAG’s office are charged on the Consolidated Fund of India.

Third Schedule :-

• Section IV of the Third Schedule to the Indian Constitution prescribes the form of oath or affirmation to be made and subscribed by the Judges of the Supreme Court and the Comptroller and Auditor General of India when they enter upon their offices.

Article 149 : Duties and Powers of the CAG

• Article 149 : Duties and Powers of the CAG
• According to this, Parliament should make laws for the maintenance and management of the accounts of the Centre and the states.
• In the year 1971, Parliament made a law regarding the functions and powers of CAG. This law was amended in 1976 and accounting and auditing were separated.

Functions of CAG :-

• To audit the following-
  • Expenditures of the Union and the States.
  • Expenditures of the Consolidated Fund of India.
  • Expenditures of the Contingency Fund of the Union.
  • Expenditures of the Public Provident Fund of the Union.
  • Expenditures of the Consolidated Fund of the State.
  • Expenditures of Government Corporations and Companies.
  • Accounts of all departments of the Union and State Governments.
  • Revenues and expenditure of the Union and State Governments.
• On the request of the President or the Governor, the audit of local bodies can also be done.
• To give advice to the President regarding the accounting form statement of the Central and State Government.
• It provides assistance to the Public Accounts Committee (PAC) of the Parliament, therefore it is called the guide, friend and philosopher of the Public Accounts Committee.
• To give advice to the government on how the format of accounts should be.
• Submits the details of the accounts of the Centre or the audit report to the President, and the President gets it placed before the Parliament.
• Submits the audit report of the state to the Governor, and the Governor gets it placed before the Legislature.

Article 150 : Form of Accounts of The Union and of The States

• Article 150 : The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG of India, prescribe.

Article 151 : Audit Reports

• Article 151 : Annual Report
  • Annual Report : CAG submits the annual report of the Central Government to the President and the annual report of the State Government to the Governor.
  • The President gets the annual report tabled in the Parliament through the Union Finance Minister.
  • The Governor gets the annual report tabled in the Legislature through the State Finance Minister.

Two types of reports are prepared by CAG. Such as-

1. Report of Government Expenditures : This report is presented in the Public Accounts Committee (PAC), and this committee itself examines it.
2. Report of Expenditures of Government Companies (PSU) : This report is presented in the Public Undertakings Committee (PUC), and this committee itself examines it.
   • Both the above types of reports are first sent to the President, later the President sends them for presentation in the Parliament.

Former CAGs of India

List of former CAGs of India (before independence)

List of former CAGs of India (post-independence)

Current CAG of India

• Shri K Sanjay Murthy :-
  • Tenure : 21^st November, 2024 till present
  • Oath : 21^st November, 2024 (by President Draupadi Murmu)
  • He is the 15^th CAG of India respectively.
  • He is a 1989 batch Indian Administrative Service (IAS) officer of Himachal Pradesh cadre.
  • Prior to his appointment as CAG, he served as Education Secretary, Department of Higher Education, Ministry of Education from October 1, 2021 to November 20, 2024.
  • While in the post of Education Secretary, he played an important role in shaping the education policies and initiatives of the country.

Other important facts

• CAG is also called the watchdog of public finance.
• CAG has been given the same status as a judge of the Supreme Court.
• Critics sometimes call CAG a bloodthirsty hound instead of a vigilant watchdog who catches hold of the legs of government officials and does not let them move forward.
• Paul H. Appleby severely criticized CAG and called its functions a colonial legacy.
• The post of CAG is usually filled by an officer of the Indian Administrative Service (IAS) or the Indian Accounts Service.