CAG.pptx

UPSC/POLITY/

1. Comptroller and Auditor General of India

2. Introduction Article 148- provides for an independent office of the (CAG of India). Head of the Indian Audit and Accounts Department. Guardian of the public purse and controls the entire financial system of the country. Bulwarks of the democratic system of government in India.

3. Appointment of CAG The CAG is appointed by the president of India by a warrant under his hand and seal. The CAG, before taking over his office, makes and subcribes before the president an oath or affirmation. He hold office for a period of six years (or) up to 65 years . Resignation to the president. He can also be removed by the president on the same grounds and in the same manner as a judge of the supreme court ( Parliament- Simple majority ). Appointment of CAG

4. Independence of CAG Removed by the president only. Security of Tenure He is not eligible for further office, either under the government of India or of any state, after he ceases to hold his office. His salary and other services conditions are determined by the parliament. The administrative expenses of the office of the CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the C onsolidated Fund of India. Thus, they are not subject to the vote of parliament. Further , no minister can represent the CAG in parliament(both hose) and no minister can be called upon to take any responsibility for any actions done by him. Independent of CAG

5. Duties and Power He audits the accounts related to- Consolidated Fund of India, The Consolidated Fund of each state, and Consolidated Fund of each UT having a L egislative Assembly. He audits all expenditures from the- Contingency Fund of India, The Public Account of India, The contingency fund of each state and the public account of each state. Duties and Powers

6. He audit all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central and State Government. Audit the receipts and expenditure of the centre and each state. He also complies and maintains the accounts of state government. Audit all transaction of the central and state govt related to debt,sinking,funds,deposits,advances,suspense accounts and remittence business. He audits the accounts of any other authority when requested by the President or Governor. Ex: the audit of local bodies. CONTI…

7. 6 . Article 150-  To advise the President with regard to the prescription of the form in which the accounts of the Centre and the states shall be kept. 7 . Article 151-  To submit his audit reports relating to the accounts of the Centre to the President, who shall, in turn, place them before both the Houses of Parliament and also to submit audit reports relating to the accounts of a State to the Governor, who shall, in turn, place them before the state legislature. CONTI…

8. 8. Article 279-  To ascertain and certify the net proceeds ( the proceeds of a tax or a duty minus the cost of collection) of any tax or duty and the CAG’s certification will be final. 9. Act as a guide, friend, and philosopher of the Public Accounts Committee of the Parliament. 10. To compile and maintain the accounts of state governments (audit, that is, departmentalization of accounts). CONTI…

9. Comparison with Britain CAG CAG of India only performed the role of an Auditor General and not of a Comptroller but in Britain it has the power of both Comptroller as well as Auditor General. In India the CAG audits the accounts after the expenditure is committed i.e. ex post facto. In UK no money can be drawn from the public exchequer without the approval of the CAG. In India, CAG is not a member of the parliament while in Britain; CAG is a member of house of the Commons. Comparison with Britain CAG

10. Constitutional Provisions Article 148  broadly deals with the CAG appointment, oath and conditions of service. Article 149  deals with Duties and Powers of the Comptroller and Auditor-General of India. Article 150  says that the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG, prescribe. Article 151  says that the reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament. Article 279 – Calculation of "net proceeds" is ascertained and certified by the Comptroller and Auditor-General of India, whose certificate is final. Constitutional Provisions

11. Third Schedule –  Section IV of the Third Schedule of the Constitution of India prescribes the form of oath or affirmation to be made by the Judges of the Supreme Court and the Comptroller and Auditor-General of India at the time of assumption of office. According to  Sixth Schedule  the accounts of the District Council or Regional Council should be kept in such form as CAG, with the approval of the President, prescribe. In addition these bodies account are audited in such manner as CAG may think fit, and the reports relating to such accounts shall be submitted to the Governor who shall cause them to be laid before the Council. C ONTI…

12. Dr . B.R. Ambedkar said that the CAG shall be the most important Officer under the Constitution of India. There has been little attention paid to the office of the CAG as compared to other posts and offices, as mentioned under the Constitution, but it is an office of utmost importance and relevance. It is high time to make relevant reforms to make the functioning of the CAG more transparent and efficient. C onclusion