Question

Which of the following statements are correct about the Comptroller and Auditor General (CAG) of India?

i. The CAG’s salary is equivalent to that of a Supreme Court judge.
ii. The CAG submits three audit reports to the President: on appropriation accounts, finance accounts, and public undertakings.
iii. The CAG can audit the accounts of private companies not financed by the government.
iv. The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee of Parliament.

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

Answer 1

Answer:

B. Only (i, ii, and iv)

Comptroller and Auditor General (CAG) of India

• Constitutional Basis: The CAG is an independent constitutional authority established under Article 148 of the Indian Constitution.

• Appointment and Tenure: Appointed by the President, the CAG holds office for a term of six years or until the age of 65 years, whichever is earlier.

• Salary and Emoluments: The salary and other conditions of service of the CAG are determined by law made by Parliament. As per the relevant acts, the salary of the CAG is equivalent to that of a judge of the Supreme Court. This ensures financial independence and impartiality.

• Removal: The CAG can be removed from office in a manner similar to the removal of a Supreme Court judge, i.e., through an address by both Houses of Parliament on grounds of proved misbehaviour or incapacity. This makes the office secure.

• Functions and Role:

  • The CAG audits the accounts of the Union and State governments, including government companies and corporations.

  • The CAG submits three main audit reports to the President:

    • Report on the Appropriation Accounts of the Union and State governments.

    • Report on the Finance Accounts of the Union and State governments.

    • Report on the accounts of Government Companies and Corporations.

    These reports are then laid before both Houses of Parliament (or the State Legislature).

  • The CAG plays a crucial role in ensuring accountability in public expenditure.

  • The CAG acts as the 'watchdog of the national purse'.

  • The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee (PAC) of Parliament. The PAC scrutinizes the audit reports presented by the CAG.

• Limitations: The CAG's authority to audit is primarily limited to accounts related to government revenue and expenditure. The CAG generally does not audit the accounts of private companies unless specifically requested or if they are substantially financed by the government or guaranteed by it.

• Independence: The Constitution guarantees the independence of the CAG to ensure that audits are conducted without fear or favour.