Comptroller & Auditor General of India (CAG)

Appointed by President, nominated by PM of India + Office term – 6 years or up to 65 years of age + Salary – 90,000 / month & can be removed by the President on the same grounds & manner as a judge of SC.

Duties & Function

He is the Chief Guardian of public purse & head of Indian audit & account department.
Audits accounts of Union & states to ensure nothing is spent out of consolidated fund of India or of the state without the sanction of the parliament or respective state legislature.

Audits government owned companies (51% stake of Gov.) as an external auditor
Reports of CAG are taken into consideration by public accounts committee (PAC)
Audits all receipts and expenditures of the Government of India and state governments.
Audits accounts of bodies and authorities substantially financed by the government.
Conducts performance audits to evaluate efficiency and effectiveness of government programs.
Audits public sector undertakings (PSUs), including their financial statements.
Submits audit reports to the President or Governor, who presents them to Parliament or State Legislature.
Ensures public money is spent legally and appropriately.
Audits defense services and related expenditures.
Conducts compliance audits to check adherence to rules and procedures.
Audits transactions of autonomous bodies when requested by the President or Governor.
Assists Parliamentary Committees like the PAC (Public Accounts Committee) with audit findings.
Audits Contingency Funds and Public Accounts of both Centre and States.
Reports cases of waste, fraud, loss, or inefficiency in public expenditure.
Verifies whether the government has received all revenues and dues correctly and on time.
Checks for irregularities in tax collection or evasion.
Conducts environmental audits to assess the government’s role in sustainable development.
Ensures accountability of government employees and departments in handling public funds.
Certifies the net proceeds of taxes, like Union Excise and Income Tax.
Advises on accounting standards and financial reporting practices for government bodies.
Conducts information systems audits for IT-based government systems and services.
Promotes transparency, financial discipline, and good governance in the public sector.

Also read: Attorney General of India and Council of Ministers

Public accounts committee (PAC)

A committee of not more than 22 members (LS > 15 & RS > 7)
formed every year in parliament & state legislature
No member of PAC should be from COM
Chairman of PAC is appointed by speaker of Lok Sabha & is generally from opposition party.

Recommended: Books for UPSC Mains and UPSC Prelims

Independence of office of CAG

Gets security of tenure as though appointed by President, CAG may be removed from his office only on the grounds of proved misbehaviour or incapacity only in a manner as a judge of SC is removed (i.e., each house of parliament is passing a resolution supported by not less than 2/3^rd of the members present & voting)

Salary & conditions of his service cannot be changed except under financial emergency
His salary is charged from consolidated fund of India & is not subjected to vote of parliament (paid salary equivalent to Judge of SC) & is eligible for annual pension

In other matters, his conditions of service shall be determined by rules applicable to an IAS officer, holding a rank of secretary to GOI
After retirement, he is disqualified for appointment under union or state government.

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