Question

Which of the following statements is/are correct regarding the duties of the CAG?

(i) The CAG audits all transactions related to the Contingency Fund of India and the Public Account of India, as well as those of the states.

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

• 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

• The CAG audits all expenditures from the Contingency Fund of India and the Public Account of India, and similarly for the states. This ensures transparency and accountability in the management of public funds.

• Article 149 of the Constitution of India empowers the CAG to audit the accounts of the Union, states, and any other authority or body directed by Parliament or any state legislature.

• However, the CAG does not compile and maintain the accounts of the Central Government and state governments. This responsibility lies with the respective ministries and departments. The CAG's role is primarily that of an auditor, examining the accounts after they have been prepared.

• The CAG submits audit reports to the President (for Union accounts) and the Governor (for state accounts), who then cause them to be laid before Parliament or the state legislature, respectively.

• The CAG audits government companies, corporations, and even private bodies receiving significant government grants or loans.

• The CAG is an independent constitutional authority, appointed by the President and removable only by impeachment, ensuring impartiality in its functions.

• The CAG's reports are crucial for the Public Accounts Committees (PAC) of Parliament and state legislatures, which scrutinize government spending and identify irregularities.