Comptroller and Auditor General (CAG)

Why in News?

CAG highlights flaws in Bihar’s Ayushman Bharat and PMAY, from weak beneficiary checks to poor fund utilisation.

• CAG – CAG is a constitutional authority under Articles 148–151 of the Constitution, audits the financial accounts of the Government of India and its state governments.
• CAG is the head of the Indian Audit and Accounts Department.
• He/She is the guardian of the public purse and controls the entire financial system of the country at the Centre and the State level.
• Colonial Foundations – The roots of the IA&AD trace back to the British colonial administration, where financial accountability was introduced to monitor revenue and expenditure.
• Early structures focused on civil accounts and revenue audits, laying the groundwork for modern practices.
• Constitutional provision – Article 148 provides for an independent office of the CAG.
• Appointment by – The President of India by a warrant under his hand and seal.
• Governed by – The Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971, with significant amendments in 1976, 1984, and 1987.
• Tenure – 6 years or up to the age of 65 years, whichever is earlier
• Resignation – CAG can resign at any time from his office by addressing the resignation letter to the President of India.
• Removal – Same manner as a judge of the Supreme Court of India.
  • Can be removed by the President based on a resolution passed to that effect by both Houses of Parliament with a special majority.
• Reason for removal – Proved misbehaviour or incapacity.
• Reappointment – Not eligible for further office, either under the Government of India or of any State.
• Salary & service conditions – Service conditions are determined by the Parliament; salary is equal to judge of the Supreme Court.
• Administrative expenses – Charged upon the Consolidated Fund of India (CFI).

CAG, Supreme Court, Election Commission and Union Public Service Commission were referred to as the bulwarks of the democratic system of government.

References

1. Indian Express | CAG flags issues in Ayushman Bharat and PMAY in Bihar
2. CAG of India | CAG