COMPTROLLER AND AUDITOR GENERAL (Syllabus: GS Paper 2 – Polity)

News-CRUX-10     12th April 2024        

Context: A brewing confrontation recently surfaced between the Tamil Nadu government and the Comptroller and Auditor General (CAG) following the sudden removal of its deputed senior official amidst an unplanned meeting on April 1st by the state's finance secretary.

 Comptroller and Auditor General (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. He 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. He 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

  • The CAG conducts audits on expenditures from the Consolidated Fund of India, the consolidated fund of each state, and the consolidated fund of each union territory with a Legislative Assembly.
  • Auditing extends to the Contingency Fund of India, the Public Account of India, as well as the contingency fund and public account of each state.
  • In an advisory capacity, the CAG provides guidance to the President on the prescribed form in which the accounts of the Centre and states should be maintained.
  • Audit reports related to the accounts of the Centre and state are submitted to the President and governor respectively.