Question

Consider the following statements about the CAG’s duties:

(i) The CAG audits all expenditure from the Consolidated Fund of India and each state.

(ii) The CAG compiles and maintains the accounts of the Central Government.

(iii) The CAG submits audit reports on public undertakings to the Prime Minister.

Which of the statement(s) is/are NOT TRUE?

• A. Only (i)
• B. Only (ii)
• C. Only (iii)
• D. (ii) and (iii)

Answer 1

Answer:

D. (ii) and (iii)

Comptroller and Auditor General (CAG) of India

• Article 149 of the Constitution of India defines the duties and powers of the CAG.

• The CAG audits all expenditure from the Consolidated Fund of India and each State, as well as from the Contingency Fund of India and the Contingency Fund of each State, and the public accounts of the Union and the States. This aligns with statement (i).

• The CAG is responsible for auditing the accounts of the Central Government, State Governments, and certain other bodies and authorities.

• Important Distinction: The CAG does not compile and maintain the accounts of the Central Government. This responsibility was transferred from the CAG to the Finance Ministry (Controller General of Accounts) in 1976. Therefore, statement (ii) is NOT TRUE.

• The CAG submits audit reports to the President (for Union Government accounts) and the Governor (for State Government accounts). These reports are then laid before Parliament or the State Legislature, respectively.

• Audit reports on Public Undertakings are submitted to the President, who then causes them to be laid before Parliament. They are not submitted directly to the Prime Minister. Therefore, statement (iii) is NOT TRUE.

• The CAG is an independent constitutional authority, often referred to as the 'eyes and ears' of Parliament in the matter of financial administration.

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

• The CAG can be removed from office in like manner and on the like grounds as a Judge of the Supreme Court.