Government Audit — CAG

5.1 Constitutional Position of CAG

Article 148: The Comptroller and Auditor General of India shall be appointed by the President of India by warrant under his hand and seal.

• Tenure: 6 years or age 65, whichever is earlier
• Removal: Only by process similar to removal of a Supreme Court Judge (address by Parliament with 2/3rd majority)
• Independence: Salary charged to Consolidated Fund of India (not subject to Parliamentary vote) — ensures independence
• Current CAG: Girish Chandra Murmu (appointed August 2020)

Historical context: The office of Auditor General was created under the Government of India Act, 1858 (British India). The position was constitutionalised in the Constitution of India (1949, effective 1950) as Articles 148–151.

5.2 Functions/Duties of CAG (as asked in 2023 Q43 — four duties)

Key duties of the CAG:

1. Audit Union and State Accounts: Audit all receipts and expenditures of the Union and State Governments, including the Consolidated Fund, Contingency Fund, and Public Account.
2. Audit PSUs: Audit the accounts of government companies, corporations, and other public sector undertakings.
3. Performance Audit: Evaluate the economy, efficiency, and effectiveness of government programmes through value-for-money audits.
4. Submit Reports to Parliament and Legislatures: Place audit reports before Parliament for the Union and before State Legislatures for the States, forming the basis of PAC scrutiny.
5. Compile and Certify Finance Accounts: Compile the Finance Accounts and Appropriation Accounts of the Union and States and certify their correctness.

CAG's Relationship with Parliament:

• CAG reports are tabled in Parliament
• Public Accounts Committee (PAC) of Parliament examines CAG reports
• PAC calls ministries/departments to explain audit findings
• This is how Parliament exercises financial oversight over the Executive

5.3 Types of Government Audit

Audit Type	What It Examines
Regularity/Compliance Audit	Were rules, regulations, and budgetary provisions followed?
Appropriation Audit	Did actual spending match Parliamentary sanctions?
Finance Audit	Accuracy of financial accounts, receipts, and payments
Performance Audit	Economy, efficiency, and effectiveness — three 'E's
Commercial Audit	PSUs, government companies — profit/loss, commercial operations
IT Audit	Computerized systems, e-governance applications

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