Why this matters now
The CAG is tested for its constitutional basis, independence, audit scope, and the “comptroller” misnomer, plus its link to the PAC. Its reports often drive current-affairs accountability debates.
Appointment and independence
The CAG is appointed by the President under Article 148, holds office for six years or until age 65, and can be removed only like a Supreme Court judge. Independence is secured by a fixed tenure, a salary charged on the Consolidated Fund, and a bar on further office under the government after retirement.
Duties and audit powers
The CAG audits all receipts and expenditure from the Consolidated Funds of the Union and states, the Contingency Fund and Public Account, and the accounts of government companies and bodies substantially financed by the government. Reports are submitted to the President/Governor and laid before the legislature.
Types of audit
- Regularity (compliance) audit — whether spending followed rules and authorisations;
- Financial audit — whether accounts are true and fair;
- Performance audit — whether public money achieved economy, efficiency and effectiveness (value for money).
“Comptroller” — a misnomer
Despite the name, India’s CAG has no control over the issue of money from the Consolidated Fund (unlike the British CAG) — it only audits after the fact. Its reports feed the Public Accounts Committee (PAC), which examines them and holds the executive accountable — making the CAG and PAC partners in financial oversight.
UPSC angle
Know Article 148, removal like an SC judge, the audit scope (CFI, govt companies), the three audit types, the “comptroller” misnomer (audit only), and the CAG–PAC link.
Frequently asked questions
What is the constitutional basis of the CAG?
Article 148 of the Constitution; the CAG is appointed by the President for six years or until age 65.
Why is “comptroller” a misnomer for India’s CAG?
Because, unlike the British CAG, India’s CAG only audits expenditure after it occurs and has no control over the issue of money from the Consolidated Fund.
What does the CAG audit?
Receipts and expenditure from the Consolidated Fund, Contingency Fund and Public Account of the Union and states, and government companies and substantially financed bodies.
How is the CAG linked to the Public Accounts Committee?
The CAG’s audit reports are examined by the PAC, which uses them to hold the executive accountable to Parliament.