Comptroller and Auditor General of India (Syllabus: GS Paper 2 – Polity)

Context: A Comptroller Auditor General (CAG) of India report has highlighted two projects that failed to materialise due to lapses in following procedures by the Union Ministry of Environment, Forest and Climate Change (MoEFCC). 

Comptroller and Auditor General of India (CAG)

• Constitutional Body: The Constitution of India (Article 148) provides for an independent office of the Comptroller and Auditor General of India (CAG).
• Appointment: The CAG is appointed by the President of India by a warrant under his hand and seal.

oHe is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.

• Term of office: The CAG holds office for a period of six years or up to the age of 65 years, whichever is earlier.

oHe can resign any time from his office by addressing the resignation letter to the president.

• Removal: He can be removed by the president on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehaviour or incapacity.
• He can be removed by the president on the same grounds and in the same manner as a judge of the Supreme Court. 

• Duties of CAG: His duty is to uphold the Constitution of India and laws of Parliament in the field of financial administration.

oHe audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT having a legislative assembly.

oHe audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.

oHe audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.

oHe audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.

oHe ascertains and certifies the net proceeds of any tax or duty and his certificate is final on the matter.

• Audit reports: He submits 3 audit reports to the President: audit report on appropriation accounts, audit report on finance accounts and audit report on public undertakings.

oHe submits his audit reports relating to the accounts of the Centre and State to the President and Governor,who shall, in turn, place them before both the houses of Parliament and the state legislature respectively.

oNo minister can represent the CAG in Parliament (both Houses) and no minister can be called upon to take any responsibility for any actions done by him.