Comptroller and Auditor General of India
Comptroller and Auditor General of India (CAG)
1. Constitutional Position:
The CAG of India is a Constitutional authority established under Article 148 of the Indian Constitution.
The office of CAG is created to ensure independent auditing and supervision of government accounts.
The CAG audits all receipts and expenditures of the Government of India and the State Governments.
The CAG also audits accounts of bodies substantially financed by the government.
2. Appointment and Tenure:
The CAG is appointed by the President of India (Article 148).
The CAG holds office for a term of 6 years or until the age of 65 years, whichever is earlier (Article 148(3)).
The CAG enjoys security of tenure and cannot be removed except in a manner similar to a Supreme Court judge, i.e., by the President on grounds of proven misbehavior or incapacity (Article 148(4)).
3. Functions and Powers:
The primary duty of the CAG is to audit the accounts of the Union and State governments.
The CAG submits reports to the President or the Governor, who then places them before the Parliament or State Legislature.
Audits conducted by the CAG include:
Civil audits
Defence audits
Railway audits
The CAG can also audit corporations or authorities substantially financed by the government.
The CAG’s reports form the basis for parliamentary oversight on government expenditure.
4. Independence of CAG:
The Constitution guarantees independence to the CAG to ensure impartial and unbiased audit of government finances.
The independence is secured by:
Appointment by the President.
Security of tenure.
Removal procedure similar to that of Supreme Court judges.
Financial autonomy — CAG’s salary and conditions of service cannot be altered to his disadvantage after appointment.
5. Judicial Interpretation & Case Law:
a) S. P. Sampath Kumar v. Union of India (1987) — Supreme Court
Issue: Whether the CAG is a civil servant or an independent constitutional authority.
Held: The Supreme Court held that the CAG is an independent constitutional authority, not a civil servant under the government.
This independence is essential for the proper discharge of his constitutional duties.
The Court emphasized that the CAG should be free from government control in matters of audit and accountancy.
b) Subhash Chandra Agarwal v. Union of India (1988) — Supreme Court
Issue: Whether the CAG can conduct audits of government-aided institutions.
Held: The Court upheld the power of the CAG to audit bodies substantially financed by the government.
This reinforced the wide scope of the CAG’s auditing powers.
c) Union of India v. R. Gandhi (2010) — Supreme Court
Issue: Whether the CAG is subject to the control of the executive government.
Held: The CAG functions independently and is not subject to the directions of the executive in audit matters.
The Court reiterated that the CAG is the “watchdog” of public funds and must perform the duty without fear or favor.
6. Significance of CAG:
The CAG plays a vital role in ensuring transparency and accountability in the functioning of the government.
The audit reports submitted by the CAG are examined by Parliamentary Committees such as the Public Accounts Committee.
The CAG acts as a deterrent against financial mismanagement and corruption.
It is an important pillar in the system of checks and balances in a democratic government.
7. Summary:
| Aspect | Details |
|---|---|
| Constitutional Basis | Article 148 to 151 |
| Appointment | President of India |
| Tenure | 6 years or up to 65 years of age |
| Removal | Same procedure as Supreme Court judge |
| Functions | Audit of Union and State Governments’ accounts; audit of government-funded bodies |
| Independence | Constitutional safeguards; security of tenure and salary |
| Judicial Recognition | Independent constitutional authority (S.P. Sampath Kumar case) |
| Role | Guardian of public funds and government accountability |
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