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.webp "Comptroller Auditor General India Cag")
The Comptroller and Auditor General of India (CAG) is a constitutional authority responsible for auditing public finances at the Union and State levels. Appointed under Article 148 of the Indian Constitution, the office operates independently of the executive to examine government receipts and expenditures.
Audit reports prepared by the CAG are submitted to the President or State Governors and placed before Parliament or state legislatures. With the expansion of digital governance, the role of CAG in Digital India also includes reviewing technology-enabled public systems and digital programmes.
Overall, the office of the CAG functions as an institution for financial accountability, contributing to transparency, legislative oversight, and governance standards across public systems.
In administrative terms, the CAG meaning is linked to independent oversight of government finances.
The CAG operates independently of the executive and reports to the legislature, ensuring objectivity in its findings, which can impact shareholder confidence and market value.
| Article | Provision |
|---|---|
Article 148 |
Establishes the office of the CAG |
Article 149 |
Prescribes duties and powers of the CAG |
Article 150 |
Authorises the CAG to prescribe accounting forms |
Article 151 |
Lays down the process of submitting audit reports to the legislature |
The functions of the Comptroller and Auditor General of India define how public financial accountability is examined across different levels of government. These responsibilities outline the scope within which the comptroller and auditor general of india cag reviews the use of public funds and financial reporting practices.
The CAG examines receipts and expenditures of the Union and State governments, covering ministries, departments, and constitutionally established bodies.
Government-owned enterprises at the central and state levels are audited to assess compliance with financial rules and approved policies.
Funds released to institutions, bodies, and non-governmental organisations are reviewed to verify their utilisation for the stated purposes.
The CAG certifies the Annual Financial Statement of the Union Government before it is presented to the legislature.
Selected programmes and schemes are reviewed to assess implementation and operational outcomes, alongside financial examination.
Together, these functions define the institutional role of the CAG in examining how public resources are recorded, utilised, and reported within India’s governance framework.
The Comptroller and Auditor General of India is vested with defined powers that enable independent examination of government finances and public expenditure across various levels of administration.
Can audit public funds:
Can examine all receipts and expenditures from the Consolidated Fund of India and the Consolidated Funds of the States, along with transactions related to Contingency Funds and Public Accounts.
Can audit government departments and assets:
Can audit the accounts of government departments, including associated stores, inventories, and stock holdings.
Can audit public sector entities:
Can audit government companies, corporations, and bodies that are substantially financed by government funds.
Can audit grants and loans:
Can review grants-in-aid, loans, and funds released for specific purposes to ensure usage aligns with stated objectives.
Can conduct special and entrusted audits:
Can carry out audits assigned by the President of India or State Governors, including audits of certain local bodies.
Determines audit scope and methodology:
Decides the scope, form, and manner of audits independently, without executive direction.
Heads the audit administration:
Heads the Indian Audit and Accounts Department, which supports the execution of audit responsibilities.
Submits audit reports to legislatures:
Submits audit reports to the President or Governors, after which they are presented before Parliament or State Legislatures.
Together, these powers define the institutional authority of the CAG in overseeing public financial accountability within the constitutional framework.
The CAG conducts different categories of audits to examine government accounts, programmes, and systems in accordance with prescribed standards.
| Audit Type | Purpose |
|---|---|
Compliance Audit |
Examines adherence to applicable laws, rules, and regulations |
Financial Audit |
Verifies accuracy of financial statements |
Performance Audit |
Assesses whether programmes achieve intended results |
IT Audit |
Evaluates information systems used in governance |
Each audit is followed by a report that is submitted to the Parliament or the concerned state legislature.
V. Narahari Rao (1948–1954) – First CAG of independent India
Anil Kumar Chanda (1954–1960)
A. K. Roy (1960–1966)
S. Ranganathan (1966–1972)
A. Bakshi (1972–1978)
Gian Prakash (1978–1984)
T. N. Chaturvedi (1984–1989)
C. G. Somiah (1990–1996)
V. K. Shunglu (1996–2002)
V. N. Kaul (2002–2008)
Vinod Rai (2008–2013)
Shashi Kant Sharma (2013–2017)
Rajiv Mehrishi (2017–2020)
Girish Chandra Murmu (2020–2024)
Current CAG: K. Sanjay Murthy (Nov 2024–Present)
The appointment and tenure of the CAG are designed to maintain its autonomy:
Appointed by: The President of India
Tenure: 6 years or until the age of 65, whichever is earlier
Removal: Same process as that for a Supreme Court judge - through impeachment by Parliament
The fixed tenure and secure removal process safeguard the CAG's independence.
The Comptroller and Auditor General of India performs defined functions that contribute to financial oversight within India’s governance framework.
| Area | Description |
|---|---|
Financial oversight |
Prevents misuse of public funds |
Transparency mechanisms |
Makes audit reports publicly available |
Legislative accountability |
Empowers Public Accounts Committee (PAC) and Committee on Public Undertakings (COPU) |
Identification of irregularities |
Uncovers irregularities and inefficiencies |
Policy review inputs |
Offers data-driven insights to improve governance |
Several CAG reports have had significant impact on policy and accountability:
| Year | Audit Topic | Impact |
|---|---|---|
2010 |
2G Spectrum Allocation |
Highlighted procedural lapses and loss to exchequer |
2012 |
Coal Block Allocation |
Estimated ₹1.86 lakh crore loss due to non-transparent allocation |
2013 |
Commonwealth Games |
Flagged cost overruns and procedural flaws |
2020 |
PMJAY Scheme Audit |
Identified issues in beneficiary identification and fraud controls |
These reports not only held authorities accountable but also triggered policy and procedural reforms.
Despite its role, the CAG faces several challenges:
| Challenge | Explanation |
|---|---|
Limited Enforcement Power |
CAG can report irregularities but cannot enforce corrective action |
Audit Delays |
Complexity of government accounts can lead to audit backlogs |
Resistance from Departments |
Lack of cooperation may affect access to data |
Public Awareness |
Not all citizens engage with or understand audit findings |
While the CAG ensures accountability, actual reform depends on the action taken by lawmakers and departments.
The CAG enhances democratic functioning by:
Providing an audit trail of how taxpayer money is spent
Supporting legislative scrutiny through credible data
Empowering citizens through transparency and information
Through these functions, the institution operates within its constitutional mandate to examine the use of public funds in the public domain.
The Comptroller and Auditor General of India functions as a constitutional authority responsible for auditing public accounts and reporting financial findings to the legislature. Through its audit and reporting framework, the institution contributes to oversight mechanisms related to public expenditure within India’s governance structure.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
No. The CAG’s role is to audit and report. It is up to Parliament and law enforcement agencies to act on its findings.
Yes. All departments using public funds or receiving grants are subject to CAG audits.
CAG reports can be debated in Parliament, and departments can provide clarifications, but the audit itself is final unless reviewed by the CAG.
CAG reports provide audit findings that are placed before legislatures and used for financial oversight and review of public expenditure.
Financial audits examine the accuracy of accounts and financial statements, while performance audits assess whether programmes and schemes are implemented as intended.
The CAG audits government accounts and public sector entities and reports findings to the legislature under constitutional provisions.
The Comptroller and Auditor General of India is appointed by the President of India.
Yes. Findings from CAG audits are placed before legislatures and may be examined by parliamentary or state committees. These reviews can inform discussions, corrective actions, or policy revisions by the concerned authorities, depending on legislative deliberations and administrative responses.
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