The Comptroller and Auditor General (CAG) is a constitutional authority established under Article 148 of the Constitution of India.
The CAG audits all receipts and expenditures of the Union and State governments, including government companies, corporations, and autonomous bodies substantially financed by the government.
Confidentiality of Secret Service Expenditure: Statement (i) is incorrect because the CAG, while auditing expenditures, is generally barred from demanding details of secret service expenditure from executive agencies. This is to protect sensitive information related to national security and intelligence. The relevant provision is often found in audit codes or administrative instructions rather than explicitly in the Constitution.
Power to Question: Statement (ii) is correct. The CAG has the power under the CAG's (Duties, Powers and Conditions of Service) Act, 1971, to conduct investigations and to 'disallow' any charge or credit in an account that is not warranted by law. This implies the authority to question individuals responsible for managing public funds.
Parliamentary Review of CAG's Certificate: Statement (iii) is incorrect. The CAG's certificate on the net proceeds of any tax or duty is considered final and is not subject to review by the Parliament. This certification is crucial for determining the share of taxes assigned to states based on central tax collection.
Independence of the CAG: The CAG is appointed by the President and removed only by a process similar to that for Supreme Court judges, ensuring their independence from the executive.
Reporting: The CAG submits audit reports to the President (for Union accounts) and the Governor (for State accounts), who then lay them before Parliament and the State Legislatures, respectively. These reports are scrutinized by Parliamentary Committees, notably the Public Accounts Committee (PAC).
Key Function: The primary function of the CAG is to uphold the principle of accountability in public finance and to ensure that public funds are spent efficiently and in accordance with the law.
