Question

Consider the following statements regarding the CAG’s legislative framework:

Statement I: The CAG’s duties are prescribed under the CAG’s Act, 1971.

Statement II: The CAG was relieved of compiling Central Government accounts in 1976.

Statement III: The CAG’s powers are not defined in the Constitution.

Which of the following is correct?

• A. Only I and II are correct.
• B. Only II and III are correct.
• C. I, II, and III are correct.
• D. Only I and III are correct.

Answer 1

Answer:

A. Only I and II are correct.

Comptroller and Auditor General (CAG) of India: Legislative Framework

• Statement I: The CAG's duties are prescribed under the CAG's Act, 1971.
  This statement is correct. The specific duties, powers, and conditions of service of the Comptroller and Auditor General (CAG) are laid down in the CAG's (Duties, Powers and Conditions of Service) Act, 1971. This Act was enacted by Parliament to give effect to the provisions of Article 148 of the Constitution.
• Statement II: The CAG was relieved of compiling Central Government accounts in 1976.
  This statement is correct. Prior to 1976, the CAG was responsible for the compilation of accounts of both the Central and State Governments. However, based on the recommendations of the Administrative Reforms Commission (ARC), the responsibility for the compilation of the accounts of the Central Government was transferred to the Ministry of Finance (Controller General of Accounts) in 1976. The CAG continues to audit these accounts.
• Statement III: The CAG's powers are not defined in the Constitution.
  This statement is incorrect. While the CAG's Act of 1971 details many of the CAG's functions, the Constitution itself provides the foundational framework for the office. Article 148 establishes the CAG of India, prescribing their appointment and independence. Article 149 defines the duties and powers of the CAG, stating that they shall perform such duties and exercise such powers as are prescribed by Parliament by law. Therefore, the Constitution does empower Parliament to define the CAG's powers, and the CAG's Act is the law enacted by Parliament. The statement implies a complete absence of constitutional definition, which is false.

Key Constitutional Provisions related to CAG:

• Article 148: Provides for the appointment of a Comptroller and Auditor General of India.
• Article 149: Defines the duties and powers of the CAG.
• Article 150: Requires the accounts of the Union and of the States to be kept in such form as the CAG may, with the approval of the President, prescribe.
• Article 151: Stipulates that reports of the CAG relating to the accounts of the Union or a State shall be laid before Parliament or the State Legislature, respectively.

Historical Context:

• The office of the CAG in India is modelled on the British model.
• The transfer of compilation of accounts from the CAG to the Finance Ministry in 1976 was a significant administrative reform aimed at separating audit from accounts.