1. Introduction

Comptroller and Auditor General is an authority, established by Constitution of India who audits all receipts and expenditure done by union and state governments. The CAG is independent from  the government’s influence. Part 5. of the Indian Constitution describes the role and responsibilities of the office of Comptroller and Auditor-General of India (CAG). In the Constitution of India under Article 148 – 151, it has been formed to keep a check on govt’s revenues and expenditures.

The Comptroller and Auditor General is one of the few offices directly appointed by the President of India.  The CAG is ranked 9th and enjoys the same status as a judge of Supreme Court of India in Indian order of precedence. Prime minister recommends Comptroller and Auditor General of India to president and then following his recommendation, president proceed with appointment. The CAG can only be removed from office in like manner and on like grounds as a judge of the Supreme Court. Shri V. Narahari Rao was the first Comptroller and Auditor General of India.

 The Comptroller and Auditor General (CAG) of India is appointed for a maximum term of six years or till he attends the age of 65 years, whichever is earlier. The Constitution of India provides for an independent office to the CAG of India. He or she is the head of Indian Audit and Accounts Department. She or he has a duty to uphold the Constitution of India and laws of the Parliament to safeguard the interests of the public exchequer. Audit of government accounts (including the accounts of the state governments) in India is entrusted to the CAG of India who is empowered to audit all expenditure from the Consolidated Funds of the union or state governments, whether incurred within India or outside, all revenue into the Consolidated Funds and all transactions relating to the Public Accounts and the Contingency Funds of the Union and the states. Specifically, audits include transactions relating to debt, deposits, remittances, Trading, and manufacturing. Profit and loss accounts and balance sheets kept under the order of the President or Governors Receipts and stock accounts. CAG also audits the books of accounts of the government companies as per companies act.

The Indian Audit and Accounts Service aids the CAG in the discharge of his/her functions. The CAG shall only be removed from office in like manner and on the like grounds as a judge of the Supreme Court.

Powers of the Comptroller and Auditor General of India

Article 148 of the Constitution of India establishes the authority of this office. It states the following points in relation to the establishment and powers of CAG.

The Comptroller and Auditor General is appointed by the President of India and can be removed from office only in the manner and on the grounds that a Judge of the Supreme Court is removed.

The person appointed to this office should take an oath of office before the President or  any other person appointed by the office of the President.

The salary, service conditions, leaves of absence, pension and age of retirement are determined by the Parliament of India and specified in the Second Schedule such that the service conditions and salary will not be modified to the disadvantage of the incumbent during their tenure.

The CAG is not eligible for any further office after the end of their tenure either in the Government of India or any State Government.

The powers and functions of the CAG are subject to the provisions of the Indian Constitution and any Acts of Parliament, along with the service conditions for the Indian Audits and Accounts Department. The rules governing these would be prescribed by the President in consultation with the incumbent.

The expenses on the administration of this office including all allowances, salaries and pensions would be charged to the Consolidated Fund of India.

The incumbent is appointed for a period of 6 years or until attaining the age of 65 years whichever is earlier.

In order to be able to discharge duties effectively, certain privileges and powers which facilitate the process of auditing have been given to this office.

The following are the major powers of the CAG of India:

The Comptroller and Auditor General or his staff can inspect any office of the organizations which are subject to his audit. He and his staff can scrutinize the transactions of the government and question the administration regarding the various aspects of these transactions. After scrutinizing the transactions, the CAG may withdraw his objections or, if he finds them serious, incorporate them in his report which is submitted to the Parliament.

To enable the office to perform this function smoothly, he is endowed with full access to all the financial records including books, papers, and documents. Moreover, the CAG has the freedom to ask for the relevant information from any person or organization. His right to call for information and accounts is statutory, as was affirmed by the order made by the Government of India in 1936 in order to enforce the Act of 1935.

Duties of CAG

Articles 148, 149, 150 and 151 of the Constitution of India describe the functions and powers of this office. The following is a brief description of various areas dealt with in these Article of the Constitution:

Article 149: Duties and Powers of the Comptroller and Auditor General: To perform such duties and exercise such powers in relation to accounts of the Union of India and the states and of any other bodies or authority, as may be prescribed by any law made by the Parliament.

Article 150: Form of Accounts of the Union of India and the States: To prescribe, with the approval of the President, the form in which the account of the Union and of the States are to be kept.

Article 151: CAG Reports: To report to the President or to the Governors of the States on the accounts of the Union or State. The constitution has also provided in Article 279(i) that the CAG has to ascertain and certify the net proceeds of any tax or duty mentioned in Chapter 1 of Part 12 of the Constitution.

Besides these constitutional provisions and the Duties Powers and Conditions of Service Act of 1971, is necessary to mention that, before 1976, the CAG had a two dimensional role, that accounting and auditing. Due to the separation of accounts and audit in 1976, the CAG’s duty is the auditing of accounts. Since 1976, accounting is being done by the various departments themselves with the help of the Indian Civil Accounts Service

 Financial control is a core function of a democratic legislature. Parliament exercises this control in two stages:

1. Before expenditure, through approval of the Budget.
2. After expenditure, by examining whether public money was spent lawfully and for the intended purpose.

The Comptroller and Auditor General of India (CAG) assists Parliament and State Legislatures in the second stage by auditing government accounts and reporting on financial administration. The CAG ensures transparency, accountability, and legality in the use of public funds.

A. Accounting Functions

Under the CAG (Duties, Powers and Conditions of Service) Act, 1971, the CAG:

• Prescribes the form of accounts for the Union and States.
• Prepares Finance Accounts and Appropriation Accounts.
• Submits these accounts to the President or the Governor.
• Provides financial data required for budget preparation.

These functions ensure uniformity and accuracy in government accounts .

B. Auditing Functions

Auditing is the primary responsibility of the CAG. The audit verifies:

• Accuracy and completeness of accounts.
• Legality and propriety of expenditure.
• Proper authorization and classification of receipts and payments.

The CAG audits:

• Consolidated Fund, Contingency Fund, and Public Accounts of the Union and States.
• Government departments, public sector undertakings, and government companies.
• Bodies and authorities substantially financed by government funds.

The CAG has the power to inspect offices, access records, and report irregularities.

Audit Reports

The CAG submits audit reports to:

• The President (Union Government).
• The Governor (State Governments).

These reports are laid before Parliament or State Legislatures and examined by the Public Accounts Committee (PAC).

Major types of reports include:

• Audit Report on Finance Accounts
• Audit Report on Appropriation Accounts
• Audit Report on Public Sector Enterprises and Revenue

The Constitution gives the CAG full discretion over the content and presentation of audit reports

6. Other Functions

In addition to regular audit work, the CAG:

• Audits government companies.
• Supplements reports of statutory auditors.
• Assists the Public Accounts Committee in legislative financial scrutiny.

The Indian Audit and Accounts Department supports the CAG in performing these duties

7. Role of the CAG in Indian Democracy

The CAG occupies a unique position in the constitutional framework:

• Acts as the guardian of the public exchequer.
• Ensures legislative control over executive spending.
• Strengthens transparency and accountability in governance.
• Functions independently, without fear or favor.

Though certain limitations exist—such as budgetary dependence and lack of direct access to Parliament—the CAG remains a cornerstone of financial accountability in India

8. Conclusion

The Comptroller and Auditor General of India is a vital constitutional authority that upholds the principles of financial discipline, transparency, and accountability. By auditing government finances and reporting to legislatures, the CAG ensures that public money is used lawfully and effectively, thereby reinforcing democratic governance in India.