Question

Which of the following statements is/are correct regarding the CAG’s audit reports?

(i) The CAG submits three audit reports to the President: on appropriation accounts, finance accounts, and public undertakings.

(ii) The CAG’s audit reports on state accounts are submitted directly to the state legislature by the CAG.

• A. Only (i)
• B. Only (ii)
• C. Both (i) and (ii)
• D. Neither (i) nor (ii)

Answer 1

Answer:

A. Only (i)

Comptroller and Auditor General (CAG) of India

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

• Role in Financial Oversight: The CAG is the head of the Indian Audit and Accounts Department and is responsible for auditing the accounts of both the Union and state governments.

• Submission of Reports (Union):

  • As per Article 149, the CAG audits the accounts of the Union and of the States, companies, corporations, bodies, and authorities substantially financed by the Government.

  • The CAG submits three types of audit reports to the President:

    • Audit report on Appropriation Accounts (Union)

    • Audit report on Finance Accounts (Union)

    • Audit report on the accounts of Public Undertakings (Union)

  • These reports are then laid before both Houses of Parliament by the President (Article 151).

• Submission of Reports (States):

  • The CAG audits the accounts of the States.

  • The audit reports relating to the accounts of a State are submitted to the Governor of the State (Article 151(2)).

  • The Governor then causes these reports to be laid before the Legislature of the State.

• Parliamentary Scrutiny: Once laid before Parliament or the State Legislature, these reports are examined by Parliamentary committees, most notably the Public Accounts Committee (PAC) and the Committee on Public Undertakings (COPU).

• Independence and Security of Tenure: The CAG has a fixed tenure of 6 years or until the age of 65 years, whichever is earlier, and can only be removed from office in a manner similar to a Supreme Court judge, ensuring independence.