top of page

CAG of India: Guardian of Public Funds

The Comptroller and Auditor General of India (CAG) has recently established a dedicated unit to audit State-run Public Sector Undertakings (PSUs), aiming to improve fiscal oversight at the state level.


About CAG

  • Constitutional Authority: Appointed under Article 148 of the Constitution by the President of India.

  • Tenure: 6 years or until the age of 65 years, whichever is earlier.

  • Reappointment: Not eligible for reappointment in either Central or State Government.

  • Removal: Similar to a Supreme Court judge — on proven misbehavior or incapacity by Parliament.


Powers & Functions

  • Defined under the CAG’s (Duties, Powers and Conditions of Service) Act, 1971.

  • Post-expenditure audit: CAG’s role begins only after government expenditure has occurred.

  • Audit Focus: Includes audits of:

    • Union and State Governments,

    • Autonomous bodies,

    • PSUs,

    • Centrally Sponsored Schemes.

  • Reports are submitted to the President or Governor, and discussed in Public Accounts Committees (PAC).

  • CAG findings can form the basis of legal prosecution by investigating agencies.


Recent Development

  • A specialized unit to audit State-level PSUs was launched for enhanced accountability and better financial management in public enterprises.


UPSC Relevance

  • GS Paper 2: Constitutional Bodies

  • GS Paper 3: Transparency and Accountability in Governance

  • Important for Prelims under Articles 148-151, and Parliamentary oversight mechanisms.


UPSC Prelims Practice Question

Q. Consider the following statements regarding the Comptroller and Auditor General (CAG) of India:

  1. The CAG is appointed by the Prime Minister of India.

  2. CAG is eligible for reappointment after completing his/her term.

  3. CAG can be removed in the same manner as a judge of the Supreme Court.

Which of the statements given above is/are correct?

A. 1 and 2 only

B. 2 and 3 only

C. 3 only

D. 1, 2 and 3


✅ Answer: C. 3 only

Explanation:

  • Statement 1 is incorrect: CAG is appointed by the President, not the Prime Minister.

  • Statement 2 is incorrect: The CAG is not eligible for reappointment.

  • Statement 3 is correct: Removal process is the same as that of a Supreme Court judge.


UPSC Mains Practice Question (GS Paper 2)

Discuss the constitutional and functional significance of the Comptroller and Auditor General (CAG) in ensuring financial accountability in India. How can CAG’s audits strengthen participatory governance?


 
 
 

댓글

bottom of page