Why this matters now
CAG is tested for: Articles 148-151 constitutional provisions; appointment (by President under hand and seal); 6-year term or age 65 (whichever earlier); removal procedure (same as Supreme Court judge); 11 functional duties under DPC Act 1971; CAG of India (Duties, Powers and Conditions of Service) Act 1971; Public Accounts Committee (PAC) link; 2G/Coalgate/Commonwealth Games audits under Vinod Rai (2008-13); and current CAG K. Sanjay Murthy.
Constitutional position
| Article | Provision |
|---|---|
| 148(1) | Appointment by President under his hand and seal. |
| 148(2) | Salary & service conditions determined by Parliament — cannot be varied to his disadvantage after appointment. |
| 148(3) | Salary + allowances + administrative expenses of CAG’s office charged on the Consolidated Fund of India (CFI) — not subject to vote. |
| 148(4) | Cannot hold any further office after retirement. |
| 149 | Duties & powers prescribed by Parliament (the DPC Act 1971). |
| 150 | Form of accounts of Union and States prescribed by President on CAG advice. |
| 151 | CAG reports on Union accounts go to President, who lays them before Parliament; State reports go to Governor, who lays them before State Legislature. |
Term: 6 years or 65 years of age, whichever earlier. Removal: by President on order based on parliamentary majority (special majority — same as Supreme Court judge) on grounds of proved misbehaviour or incapacity. CAG’s oath: discharge duties without fear, favour, affection or ill-will.
Functions & duties (DPC Act 1971)
- Audit of all expenditure from the Consolidated Fund of India + States + UTs with legislature.
- Audit of Contingency Fund + Public Accounts.
- Audit of trading, manufacturing, profit and loss accounts and balance sheets of Union/State departments.
- Audit of receipts and expenditure of bodies/authorities substantially financed (more than Rs 25 lakh or 75% of expenditure) from Union or State funds.
- Audit of Government Companies (under Section 143(7) of Companies Act 2013) and all corporations.
- Audit of stores and stock.
CAG conducts 3 types of audits: Financial audit (truth of accounts), Compliance audit (lawfulness), Performance audit (economy + efficiency + effectiveness — 3Es).
Recent CAGs & landmark audits
CAG appointments since 2002:
- V.K. Shunglu (1996-2002)
- V.N. Kaul (2002-08)
- Vinod Rai (2008-13) — the “activist CAG”: 2G Spectrum Rs 1.76 lakh crore (2010), Coalgate Rs 1.86 lakh crore (2012), Commonwealth Games audit. Contributed to UPA-II’s collapse.
- Shashi Kant Sharma (2013-17)
- Rajiv Mehrishi (2017-20)
- Girish Chandra Murmu (2020-2024) — ex-J&K LG.
- K. Sanjay Murthy (21 Nov 2024 - present) — 15th CAG; ex-Higher Education Secretary.
CAG reports go to PAC (Public Accounts Committee, 22 members — 15 LS + 7 RS, all Opposition-chaired by convention). K.C. Venugopal (Congress) currently chairs PAC.
UPSC angle
Know CAG — Articles 148-151 Constitution; Ambedkar called “most important officer”; APPOINTED by President under hand+seal; TERM 6 years OR 65 age WHICHEVER EARLIER; REMOVAL like SC judge (parliamentary special majority on proved misbehaviour/incapacity); SALARY + ALLOWANCES + ADMIN EXPENSES charged on Consolidated Fund of India NOT subject to vote (Art 148(3)); CANNOT hold further office after retirement (Art 148(4)); Art 149 duties+powers per Parliament; Art 150 form of accounts prescribed by President on CAG advice; Art 151 reports go to President for Parliament + Governor for State Leg; DPC ACT 1971 prescribes duties; AUDITS: financial+compliance+performance (3Es economy/efficiency/effectiveness); audits bodies SUBSTANTIALLY FINANCED (>Rs 25 lakh OR 75% expenditure from Union/State funds); Government Companies under Sec 143(7) Companies Act 2013; CAG reports to PUBLIC ACCOUNTS COMMITTEE (PAC) 22 members 15 LS + 7 RS Opposition-chaired; recent: V.K. Shunglu 1996-2002, V.N. Kaul, VINOD RAI 2008-13 (2G Rs 1.76 lakh cr 2010, Coalgate Rs 1.86 lakh cr 2012, CWG), Shashi Kant Sharma, Rajiv Mehrishi, GIRISH CHANDRA MURMU 2020-24, K. SANJAY MURTHY 15th CAG 21 Nov 2024+.
Frequently asked questions
What is the term of CAG?
6 years or 65 years of age, whichever is earlier — under Article 148.
How is CAG removed?
By the President based on a parliamentary special-majority address — same procedure as a Supreme Court judge — on grounds of proved misbehaviour or incapacity.
Why is CAG called the most important officer?
Because Dr Ambedkar said so in the Constituent Assembly — CAG holds the Government accountable to Parliament through audit.
Who is the current CAG?
K. Sanjay Murthy — the 15th CAG — sworn in on 21 November 2024.