Comptroller and Auditor General of India (CAG) List, Appointment, Role and Functions

The Comptroller and Auditor General (CAG) serves as the guardian of the public purse in India, ensuring transparency and accountability in government operations. The CAG audits the accounts of the Union and State governments, public sector enterprises, and other entities substantially funded by the government. Read on to learn about the office of CAG.

Why is the CAG in the News?

The CAG has been in the news because of a Supreme Court petition questioning the current appointment process. This Public Interest Litigation (PIL) calls for a more transparent and consultative approach to ensure an independent and impartial CAG for better financial accountability. The Supreme Court has asked the Centre to respond to this issue.

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CAG Full Form

The full form of CAG is Comptroller and Auditor General. This title reflects the dual responsibilities of overseeing government expenditures (Comptroller) and auditing government accounts (Auditor General). However, the CAG of India does not exercise the Comptroller function.

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What is the Comptroller and Auditor General of India?

The Comptroller and Auditor General of India is an independent authority responsible for auditing the financial transactions of the central and state governments. It ensures that funds are spent appropriately and efficiently. The CAG submits reports to the President and Governors, who present them before the Parliament and State Legislatures for review.

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CAG Constitutional Provisions

The Comptroller and Auditor General of India derives its authority from the following constitutional provisions:

• Article 148: Establishes the office of the CAG, including appointment and service conditions.

• Article 149: Defines the CAG’s duties and powers concerning government audits.

• Article 150: Empower the CAG to recommend the format for government accounts.

• Article 151: Mandates the submission of audit reports to the President and Governors for presentation before the Legislature.

History of the CAG Office

The office of the CAG has its roots in the British colonial administration. In 1858, following the transfer of power from the East India Company to the British Crown, the position of Auditor General was established in 1860. 

Post-independence, the role evolved into the Comptroller and Auditor General, with expanded responsibilities to audit and report on the accounts of the Union and State governments. Here is the timeline of CAG:

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First CAG of India

The first Comptroller and Auditor General of independent India was V. Narahari Rao, who served from 1948 to 1954. His tenure laid the foundation for the CAG's role in ensuring financial accountability in the newly independent nation.

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Current CAG of India

Currently, Shri K. Sanjay Murthy is serving as the 15th Comptroller and Auditor General of India from 21st November 2024. A 1989 batch IAS officer of the Himachal Pradesh cadre, Murthy previously held the position of Secretary in the Department of Higher Education before his appointment as the CAG. He also held the positions of Chief Executive Officer and Managing Director of the National Industrial Corridor Development Corporation Limited.

CAG Appointment

The CAG is appointed by the President of India by warrant under his hand and seal. 

• Eligibility: The constitution does not specify eligibility criteria for CAG.

• Oath of Office: Before assuming office, the CAG takes an oath to uphold the Constitution and perform their duties impartially, without fear or favor.

• Ineligibility for Further Office: After completing their term, the CAG is not eligible for any further office under the government.

The PIL has highlighted the need for a more consultative selection process to ensure the CAG’s independence.

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CAG Tenure and Terms of Service

The CAG holds office for a term of six years or until reaching the age of 65, whichever is earlier. The salary and service conditions of the CAG are set by Parliament and are on par with those of a Supreme Court judge. These conditions cannot be changed to the disadvantage of the incumbent during their term. Also, the administrative expenses of CAG are charged on the Consolidated Fund of India.

CAG Role and Functions

The CAG acts as an agent of Parliament, conducting audits on behalf of the legislative bodies to ensure that government expenditures align with parliamentary approvals. Key functions include:

• Auditing Expenditure: Audits all receipts and expenditures from the Consolidated Fund of India and from each state and Union Territory with a legislative assembly. 

• Types of Audits:

• Financial Audit: Ensures the accuracy of financial statements and compliance with relevant laws and regulations.

• Compliance Audit: Checks adherence to constitutional provisions, laws, rules, and regulations.

• Performance Audit: Assesses the economy, efficiency, and effectiveness of government policies, programs, and operations.

• Auditing Receipts: Ensuring that all revenues due to the government are collected and accounted for accurately.

• Compilation of Accounts: Compiles accounts for the Union and state governments, including gathering financial data from various government departments and entities.

• Oversight of Public Sector Undertakings: Audits government-owned corporations and conducts additional audits for companies where the government holds a significant equity stake (over 51%).

• Advisory Role: Providing recommendations to the President on the form in which accounts of the Union and States should be kept.

• Reporting: Submitting audit reports to the President or Governors, who then lay them before the Parliament or State Legislatures, ensuring legislative oversight of public finances.

Through these functions, the CAG ensures that public funds are used effectively and for their intended purposes, thereby promoting transparency and accountability in government operations.

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CAG Removal Process

The Comptroller and Auditor General of India can be removed only through a special procedure similar to the impeachment of a Supreme Court judge. The process requires:

• A resolution passed by a two-thirds majority in both Houses of Parliament.

• Approval by the President of India.

This stringent process ensures that the CAG remains independent and is not subject to undue political influence. The CAG can resign at any time by submitting a resignation letter to the President.

List of CAGs of India

Here is a list of the Comptroller and Auditor Generals of India from the establishment of the office in 1950 to the present:

In conclusion, the Comptroller and Auditor General of India (CAG) plays a crucial role in ensuring financial transparency and accountability in government operations. With its independent authority and constitutional backing, the CAG upholds fiscal discipline and prevents financial mismanagement in public administration.

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