Comptroller and Auditor General of India (CAG) — Articles 148-151

The Comptroller and Auditor General (CAG) is one of the most important constitutional authorities, often called the “guardian of the public purse.” Dr. B.R. Ambedkar called the CAG “the most important officer in the Constitution.” Expect 1-2 questions in any Kerala PSC Graduate Level paper.

1. Constitutional Provisions (Articles 148-151)

Article	Provision
Article 148(1)	There shall be a CAG of India appointed by the President by warrant under his hand and seal
Article 148(2)	Conditions of service — salary and service conditions determined by Parliament; cannot be varied to disadvantage after appointment
Article 148(3)	CAG’s salary = same as a Supreme Court judge
Article 148(4)	After retirement, CAG is not eligible for further office under the Government of India or any State
Article 148(5)	Conditions of service of the Indian Audit and Accounts Department determined by the President after consulting the CAG
Article 148(6)	Administrative expenses of the CAG’s office are charged on the Consolidated Fund of India
Article 149	Duties and powers of the CAG — as prescribed by Parliament (CAG DPC Act, 1971)
Article 150	Form of accounts of the Union and States prescribed by the President on the advice of the CAG
Article 151(1)	CAG’s reports relating to the Union shall be submitted to the President, who lays them before Parliament
Article 151(2)	CAG’s reports relating to a State shall be submitted to the Governor, who lays them before the State Legislature

2. Appointment and Removal

Aspect	Detail
Appointed by	President of India (by warrant under hand and seal)
Oath	Administered by the President (or a person appointed by the President)
Term	6 years or until age 65, whichever is earlier
Removal	Same method as a Supreme Court judge — by President on an address by Parliament (two-thirds majority of members present and voting in each House) on grounds of proved misbehaviour or incapacity
Salary	Equal to a Supreme Court judge (currently Rs. 2,50,000 per month)
Post-retirement employment	Not eligible for any government office (Union or State)
Pension	Charged on the Consolidated Fund of India (non-votable)

PSC Favourite: “CAG can be removed by the same procedure as?” — A Supreme Court judge.

3. Duties and Powers (CAG DPC Act, 1971)

Duty	Description
Audit of Union accounts	Audits all expenditure from the Consolidated Fund of India
Audit of State accounts	Audits all expenditure from the Consolidated Fund of each State
Audit of Union Territory accounts	As prescribed by the President
Audit of receipts and expenditure	Ensures money has been spent for the purpose approved by Parliament
Audit of government companies	Under Section 19 of the DPC Act and Companies Act; Supplementary audit of companies where government holds 51% or more
Certification of Finance Accounts	Prepares and certifies the Finance Accounts of the Union and States
Appropriation Accounts	Compares actual expenditure with grants approved by Parliament
Audit of bodies receiving government grants	Audits any body or authority substantially financed by government grants
Performance audit	Evaluates whether schemes achieved their intended objectives efficiently

4. Types of CAG Audits

Type	Focus
Compliance audit	Whether expenditure is legal, authorised, and follows rules
Financial audit	Whether financial statements are true and fair
Performance audit	Whether schemes and programmes achieved value for money (3 Es: Economy, Efficiency, Effectiveness)
IT audit	Audit of computerised systems and digital governance
Environmental audit	Audit of environmental compliance and pollution control expenditure

5. CAG Reports — Submission Process

Step	Detail
1. Audit conducted	CAG’s office audits Union/State accounts
2. Report prepared	Separate reports for Union and each State
3. Union reports	Submitted to the President under Article 151(1)
4. State reports	Submitted to the Governor under Article 151(2)
5. Tabling	President lays Union reports before both Houses of Parliament; Governor lays State reports before the State Legislature
6. Examination	Public Accounts Committee (PAC) examines the reports in Parliament

6. CAG and Parliamentary Committees

Committee	Relationship with CAG
Public Accounts Committee (PAC)	Examines CAG’s audit reports on expenditure; CAG is the “friend, philosopher, and guide” of PAC
Committee on Public Undertakings (COPU)	Examines CAG’s reports on government companies and corporations
Estimates Committee	Does NOT directly examine CAG reports (deals with estimates before expenditure)

PSC Tip: The PAC examines CAG reports AFTER expenditure. The Estimates Committee deals with estimates BEFORE expenditure.

7. CAG and Federalism

Aspect	Detail
Single CAG for Union and States	Unitary feature of the Indian Constitution
State audit	CAG audits State accounts; reports go to the Governor
AG of State	The Accountant General in each State works under the CAG
Criticism	States sometimes feel the CAG’s single-authority structure undermines federalism

8. CAG as a Constitutional Authority — Key Features

Feature	Detail
Independent of Executive	Removal only by Parliamentary process; salary charged on Consolidated Fund
Not part of any ministry	CAG is not under any ministry; reports directly to President/Governor
Not “Comptroller” in practice	Despite the title, CAG does not control expenditure before it occurs (unlike the British system); CAG only audits after expenditure
No executive functions	CAG has no power to disallow expenditure; can only report irregularities

PSC Favourite: “Does the CAG control expenditure before it happens?” — No. The CAG audits AFTER expenditure (post-audit). Pre-audit of expenditure is done by individual ministries and the Finance Ministry.

9. Important CAG Reports in Recent Years

Report	Key Finding
2G Spectrum Allocation (2010)	Estimated presumptive loss of Rs. 1.76 lakh crore (later debated)
Coal Block Allocation (2012)	Estimated loss of Rs. 1.86 lakh crore due to irregular allocation
Commonwealth Games (2011)	Irregularities in contracts and cost overruns
MGNREGA Audit (multiple years)	Issues with delayed payments, fake job cards, incomplete works
GST Implementation (2019)	Technical glitches, delayed refunds, compliance issues

10. List of Important CAGs of India

S.No.	Name	Tenure	Notable Fact
1	V. Narahari Rao	1948-1954	First CAG of independent India
2	A.K. Chanda	1954-1960	Strengthened audit procedures
3	A.K. Roy	1960-1966	—
7	T.N. Chaturvedi	1984-1990	Later became Governor of Karnataka
8	C.G. Somiah	1990-1996	—
9	V.K. Shunglu	1996-2002	—
10	V.N. Kaul	2002-2008	—
11	Vinod Rai	2008-2013	Famous for 2G and Coalgate reports
12	Shashi Kant Sharma	2013-2017	—
13	Rajiv Mehrishi	2017-2020	—
14	Girish Chandra Murmu	2020-present	Former Lt. Governor of Jammu and Kashmir

11. Comparison: CAG vs Attorney General vs Advocate General

Feature	CAG	Attorney General	Advocate General
Article	148-151	76	165
Appointed by	President	President	Governor
Role	Audits government accounts	Legal adviser to Union Government	Legal adviser to State Government
Removal	Same as SC judge	At pleasure of President	At pleasure of Governor
Post-retirement bar	Cannot hold any government office	No such bar	No such bar

12. Previous Year PSC-Style Questions

Question	Answer
Who appoints the CAG of India?	President of India
Under which article is the CAG mentioned?	Article 148
What is the term of the CAG?	6 years or 65 years of age, whichever is earlier
CAG reports are examined by which Parliamentary committee?	Public Accounts Committee (PAC)
Who was the first CAG of independent India?	V. Narahari Rao
CAG’s salary is equivalent to?	A Supreme Court judge
Which CAG is associated with the 2G spectrum report?	Vinod Rai
CAG reports on State accounts are submitted to?	The Governor (Article 151(2))
Is CAG a member of Parliament?	No, the CAG is an independent constitutional authority
CAG’s administrative expenses are charged on?	Consolidated Fund of India