Question

5. With reference to the Comptroller and Auditor General (CAG) of India, consider the following statements:
   i. The CAG’s term of office is 6 years or until the age of 65, whichever is earlier.
   ii. The CAG can be removed by the President without parliamentary approval.
   iii. The CAG audits the accounts of all government companies as per the Companies Act.
   iv. The CAG’s salary is equivalent to that of a Supreme Court judge.

Which of the statements given above are correct?

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

Answer 1

Answer:

A. Only i, iii, and iv

Comptroller and Auditor General (CAG) of India

• Constitutional Status: The CAG is a constitutional authority appointed by the President of India under Article 148 of the Constitution.
• Tenure: The CAG holds office for a term of six years or until the age of 65 years, whichever is earlier (Statement i is correct).
• Removal: The CAG can be removed from office in like manner and on the like grounds as a judge of the Supreme Court. This requires a resolution passed by both Houses of Parliament on grounds of proven misbehaviour or incapacity, thus, requiring parliamentary approval (Statement ii is incorrect).
• Powers and Functions: The CAG audits the accounts of the Union and State governments. This includes:
  • All receipts and expenditure of the Government of India and the state governments.
  • All bodies and authorities substantially financed by the Government of India or any state government.
  • Government companies, as per the provisions of the Companies Act, 2013 (Statement iii is correct).
• Salary and Emoluments: The salary, allowances, and pension of the CAG are charged on the Consolidated Fund of India and are not subject to the vote of Parliament. The salary of the CAG is equivalent to that of a judge of the Supreme Court (Statement iv is correct).
• Independence: The Constitution ensures the independence of the CAG by:
  • Fixing a fixed tenure.
  • Making removal difficult.
  • Charging the salary and allowances on the Consolidated Fund of India.
  • Disqualifying the CAG from holding any office under the Government of India or any state government after retirement.
• Reporting: The CAG submits audit reports to the President (for Union accounts) and the Governor (for State accounts), who then present them before Parliament and the State Legislatures, respectively.