Comptroller & Auditor General of India (CAG)

Appointed by President, nominated by PM of India + Office term – 6 years or upto 65 yrs 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)

 

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

 

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 misbehavior 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 2/3rd of the members present & voting )

  • Salary & conditions of his service can not 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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