Page 41 – Comptroller & Auditor General

Based on M. Laxmikanth – Indian Polity (6th Edition)

📖 Part VII: Constitutional Bodies 📄 Page 41 of 60
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Key Idea Summary

Core concepts and exam relevance

Core Concept Summary

The CAG (Articles 148–151) audits government accounts and ensures:

  • Transparency in public finances
  • Financial discipline
  • Accountability in public spending

Often called the "Watchdog of the Public Purse".

📌 Why This Topic is Important for UPSC / State Exams
  • Powers under Articles 148–151
  • Independence of CAG
  • Audit jurisdiction over PSUs & government bodies
  • Relation with PAC (Public Accounts Committee)
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Appointment & Tenure

Constitutional provisions for CAG

👤

Appointment

  • Appointed by President
  • By warrant under his hand & seal
  • Takes oath before President
  • Single-member body
⏱️

Tenure

  • 6 years OR
  • 65 years of age
  • Whichever is earlier
  • Can resign to President
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Removal

  • Same as Supreme Court Judge
  • By President on address by Parliament
  • Special majority required
  • On grounds of misbehavior/incapacity
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Independence

  • Salary charged on CFI
  • Not eligible for further govt office
  • Conditions cannot be varied adversely
  • Secure tenure
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Powers & Functions

Audit and reporting duties

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A) Audit Functions

  • Union government accounts
  • State government accounts
  • PSUs (Public Sector Undertakings)
  • Autonomous bodies receiving govt grants
  • Government companies
  • Receipts & expenditure audit
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B) Reporting

  • Reports to President (Union)
  • Reports to Governor (States)
  • Laid before Parliament/Legislature
  • Examined by PAC
  • Performance audit reports
✅

C) Types of Audit

  • Financial Audit – Are accounts correct?
  • Compliance Audit – Laws followed?
  • Performance Audit – Value for money?
  • Propriety Audit – Wasteful expenditure?

🔗 CAG ↔ PAC Relationship

CAG submits audit reports → Public Accounts Committee (PAC) examines them → PAC submits findings to Parliament → Government takes action.

CAG is called "Friend, Philosopher & Guide" of PAC.

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Evolution & Notable Work

Historical milestones

1
1950 – Constitutional Status

CAG established under Articles 148-151 of Indian Constitution

2
1971 – CAG Act

CAG (Duties, Powers & Conditions of Service) Act enacted

3
2010-2012 – Major Audit Findings

2G spectrum, Coal allocation, Commonwealth Games scam audits

4
Present – Performance Auditing

Focus on outcome-based audits, IT audits, SDG compliance

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Simulation Lab

CAG Audit Process Explorer

🧪 CAG Audit Simulator

Select a scenario to see how CAG audit works.

Audit Flow
📊

Select a scenario to see CAG audit process.

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Exam Booster – Practice Questions

Test your understanding

1 CAG is governed by which Articles?

A Articles 143-147
B Articles 148-151
C Articles 315-323
D Articles 280-281
✓ Correct Answer: B – Articles 148-151

Articles 148-151 deal with CAG. Art. 148 = appointment; Art. 149 = duties; Art. 150 = form of accounts; Art. 151 = audit reports.

2 Who examines CAG reports?

A Finance Ministry
B Public Accounts Committee
C Supreme Court
D President directly
✓ Correct Answer: B – Public Accounts Committee

PAC examines CAG reports. CAG is called "Friend, Philosopher & Guide" of PAC. COPU examines PSU-related audit reports.

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Memory Hooks & Quick Revision

Key takeaways for exam day

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Revision Summary

One-Line Takeaway
"CAG = Nation's financial conscience. Audit → PAC → Accountability."
3 Exam Points to Remember
  • 1 Art. 148-151: CAG provisions | Tenure: 6 years / 65 age | Removal like SC judge
  • 2 Reports to: President (Union) / Governor (State) | Examined by PAC/COPU
  • 3 Audit types: Financial, Compliance, Performance, Propriety | Salary on CFI