Comptroller and Auditor General of India (CAG): Meaning, Role, and Responsibilities

The Comptroller and Auditor General of India (CAG) is a constitutional authority responsible for auditing the revenue and expenditure of the Indian government at both the central and state levels. Established under Article 148 of the Indian Constitution, the CAG ensures financial transparency, accountability, and compliance with laws and regulations. This article explores the meaning, role, powers, and duties of the CAG of India, providing insights into its significance in maintaining governmental integrity.

What is the Comptroller and Auditor General of India (CAG)?

The CAG full form stands for Comptroller and Auditor General, an independent authority responsible for auditing all receipts and expenditures of the Government of India and State Governments. The CAG also audits government-funded autonomous bodies, commercial and non-commercial institutions, and public sector enterprises where the government holds more than 51% equity.

The reports prepared by the CAG are reviewed by the Public Accounts Committees of Parliament and State legislatures to ensure government spending aligns with legislative approvals. Additionally, the CAG supervises the Indian Audit and Accounts Service (IA&AS), thereby reinforcing the integrity of financial management in India.

Duties of the Comptroller and Auditor General of India

The key responsibilities of the Comptroller and Auditor General of India include:

1. Compiling Accounts

The CAG is responsible for compiling the accounts of both the Union and State governments. This entails collecting primary and subsidiary accounts from treasuries, departments, and government offices, which are then audited by the relevant accounting authorities.

2. Maintaining Accounts

Apart from compiling financial records, the CAG is also entrusted with maintaining detailed government accounts to ensure accuracy and financial compliance.

3. Relief from Responsibilities

The President of India, in consultation with the CAG, can relieve the CAG from the responsibility of compiling accounts for:

• The Union Government either entirely or in phases.
• Specific Union services or departments.
• A State Government, provided the Governor obtains prior approval from the President.
• Particular services or departments within the State Government.

Additionally, the President can exempt the CAG from maintaining accounts for any specific class of financial records.

4. Existing Arrangements for Accounting

If any authority other than the CAG was managing accounts for any Union or State service before the enactment of the Comptroller and Auditor General’s Act, 1971, those arrangements remain in effect unless explicitly revoked by:

• The President or Governor for compiling accounts.
• The President for maintaining accounts of any specific category.

Powers of the Comptroller and Auditor General of India

The CAG of India enjoys extensive powers as per the Comptroller and Auditor General’s (Duties, Powers, and Conditions of Service) Act, 1971. These powers allow the CAG to conduct audits effectively and ensure the government’s financial accountability to the public.

1. Auditing Government Income and Expenses

The CAG audits all revenues and expenditures of the Government of India, State Governments, and all entities funded by government revenues. This includes examining government spending on public welfare schemes, infrastructure projects, and administrative expenses.

2. Inspection of Government Offices and Records

The CAG has the authority to inspect financial records, accounts, and reports maintained by government offices, ministries, and public sector enterprises to ensure compliance with financial regulations.

3. Summoning Individuals and Documents

The CAG can summon officials and individuals responsible for managing public funds. It can also demand the production of financial records, audit reports, and other relevant documents to conduct thorough investigations.

4. Reporting Compliance to the Parliament

The CAG submits its audit reports to the President of India, who then presents them before Parliament. These reports help Parliament monitor whether government expenditure aligns with approved budgets and legal provisions.

5. Public Accessibility of Reports

To ensure transparency and accountability, the CAG’s audit reports are made available to the public. These reports often expose financial irregularities, mismanagement of funds, and inefficiencies in government programs, prompting corrective actions and reforms.

List of Comptroller and Auditor Generals of India

The position of Auditor General of India was redefined as the Comptroller and Auditor General of India during the drafting of the Indian Constitution. V. Narahari Rao, the last Auditor General of India, became the first CAG of India.

Notable Comptroller and Auditor Generals of India:

1. V. Narahari Rao (1948-1954) – First CAG of independent India.
2. A.K. Chanda (1954-1960) – Introduced reforms in auditing practices.
3. T.N. Chaturvedi (1984-1989) – Known for exposing major financial scams.
4. Vinod Rai (2008-2013) – His reports led to significant anti-corruption movements in India.
5. G.C. Murmu (2020-Present) – Current CAG of India, focusing on digital auditing.

Importance of CAG in Indian Democracy

The Comptroller and Auditor General of India plays a crucial role in strengthening the Indian democracy by ensuring financial discipline and transparency. Some of the key contributions of the CAG include:

• Preventing corruption and mismanagement by exposing financial irregularities.
• Ensuring policy effectiveness by auditing public welfare programs.
• Protecting taxpayers’ money by scrutinizing government spending.
• Strengthening parliamentary oversight by providing detailed audit reports.

The Comptroller and Auditor General of India (CAG) serves as the guardian of public funds, ensuring the government remains accountable to the people. With constitutional backing and extensive audit powers, the CAG plays a pivotal role in maintaining financial discipline, curbing corruption, and ensuring economic efficiency in government operations. Understanding the meaning, role, and responsibilities of the CAG of India is essential for appreciating its impact on governance and public accountability.

By highlighting the duties, powers, and historical contributions of the CAG of India, this blog aims to provide valuable insights into one of the most vital institutions ensuring financial transparency in the country.

Following table the Comptroller and Auditor Generals (CAG) of India from 1948 to the present: