Question

With reference to the constitutional provisions related to the CAG, consider the following statements:

i. Article 149 authorizes Parliament to prescribe the duties and powers of the CAG.

ii. Article 150 mandates that the CAG submits audit reports to the Prime Minister for presentation in Parliament.

iii. Article 151 requires the CAG to submit state audit reports to the Governor for presentation in the state legislature.

iv. Article 279 empowers the CAG to certify the net proceeds of any tax or duty.

Which of the statements given above are correct?

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

Answer 1

Answer:

C. Only (i, iii, and iv)

Comptroller and Auditor General (CAG) of India

• Article 149: This article empowers the Parliament to define the duties and powers of the Comptroller and Auditor General (CAG) concerning the accounts of the Union and of the States, and of any other body or authority when required by the President or Governor.

• Article 150: It states that the accounts of the Union or of a State shall be kept in such form as the CAG may, with the approval of the President, prescribe. This means the CAG prescribes the form of accounts, not that the reports are submitted to the Prime Minister.

• Article 151: This article deals with the audit reports. It mandates that the reports of the CAG, relating to the accounts of the Union, shall be submitted to the President, who shall cause them to be laid before each House of Parliament. Similarly, reports relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.

• Article 279: This article empowers the CAG to determine the net proceeds of any tax or duty that is to be distributed between the Union and the States. The CAG certifies this amount, which is crucial for financial allocations and devolution of taxes.

• CAG's Role: The CAG is an independent constitutional authority, often referred to as the 'eyes and ears' of Parliament in the matter of auditing government expenditure.

• Independence of CAG: The CAG is appointed by the President and can only be removed from office in like manner and on the like grounds as a judge of the Supreme Court. This ensures their independence from the executive.

• Scope of Audit: The CAG audits the receipts and expenditure of all bodies and authorities substantially financed by the Government, and examines the accounts of government companies and other corporations.