Comptroller and Auditor General of India – Political Science Teaching Aid

Slides – Teaching Aid

Slides – Kannada

1. Introduction: Guardian of the Public Purse

The Comptroller and Auditor General (CAG) of India is a supreme constitutional authority established under Article 148 of the Indian Constitution. As the head of the Indian Audit and Accounts Department, the CAG is the chief auditor of the nation’s finances and is considered the ultimate guardian of the public purse1. The office plays a critical role in upholding the financial accountability of the government to the Parliament and state legislatures, ensuring that public funds are spent efficiently and for their intended purposes1.

The CAG’s role is to act as a watchdog, controlling the entire financial system of the country at both the central and state levels2. This ensures transparency and accountability in governmental financial operations3.

2. Constitutional Framework and Provisions

The office of the CAG is deeply embedded in the Constitution, which grants it independence and defines its core mandate through several key articles:

Article 148: Provides for the independent office of the CAG, detailing the appointment, oath, and conditions of service4. The CAG is appointed by the President of India and can only be removed from office in the same manner and on the same grounds as a Supreme Court judge, ensuring operational independence1.
Article 149: Empowers the Parliament to prescribe the duties and powers of the CAG5. This led to the enactment of the CAG’s (Duties, Powers, and Conditions of Service) Act, 1971, which outlines the specifics of the CAG’s functions5 4.
Article 150: States that the accounts of the Union and the states shall be kept in a form prescribed by the President, on the advice of the CAG4.
Article 151: Mandates that the CAG’s audit reports on the Union’s accounts be submitted to the President, who then tables them before both Houses of Parliament. Similarly, reports on a state’s accounts are submitted to the Governor, who tables them before the state legislature4.
Article 279: Specifies that the calculation of “net proceeds” of any tax or duty is ascertained and certified by the CAG, and this certification is final4.

Organizational Chart

This table represents the typical structure of the CAG’s central office.

Level	Position	Role
1	Comptroller and Auditor General (CAG)	Supreme Head of the Indian Audit and Accounts Department.
2	Deputy Comptroller & Auditor General	Manages key verticals like Government Accounts, Central Revenue Audit, Human Resources, and International Relations .
3	Additional Deputy CAG	Supports the functions of the Deputy CAGs.
4	Director General	Heads various specialized audit wings and departments (e.g., Finance, Legal, Training).
5	Principal Director	Senior management level overseeing specific audit directorates.
6	Director / Deputy Director	Manages operational teams and specific audit assignments.

3. Core Duties and Functions

The CAG’s functions are primarily derived from the CAG’s Act of 1971. The key responsibilities include auditing a wide range of government financial activities:

Audit of Funds: The CAG audits all expenditures from the Consolidated Fund of India, the Consolidated Fund of each state, and Union Territories with a Legislative Assembly6 5. This also includes all transactions related to the Contingency Funds and Public Accounts of both the Union and the states6 2.
Government Departments and Companies: The CAG audits all trading, manufacturing, profit and loss accounts, and balance sheets of any department of the Central and state governments5. It also audits government companies and other corporations as required by law6.
Receipts and Expenditures: It audits the receipts and expenditures of the central and state governments to ensure that rules and procedures are followed for the assessment, collection, and allocation of revenue6 2.
Substantially Financed Bodies: The audit purview extends to all bodies and authorities that are “substantially financed” from Central or state revenues5.
Advisory Role: The CAG advises the President on the prescription of the form in which the accounts of the Centre and the states shall be kept2.

4. Role in Ensuring Accountability

The CAG is a critical pillar of India’s democratic system of accountability. Its key contributions include:

Agent of the Parliament: The CAG conducts audits on behalf of the Parliament and is responsible to it.
Link with Public Accounts Committee (PAC): The CAG acts as a “friend, philosopher, and guide” to the PAC of the Parliament. The PAC examines the audit reports of the CAG, which forms the basis of its scrutiny of government spending.
Deterrent Against Mismanagement: The CAG’s audit reports highlight irregularities, wasteful expenditure, and financial mismanagement, acting as a deterrent against corruption and inefficiency1. By bringing financial discrepancies to the notice of the legislature, it ensures that the executive is held accountable1.

5. Challenges and Suggested Reforms

Despite its constitutional stature, the CAG faces several operational challenges:

Limited Powers: The CAG is responsible for auditing but, unlike its name suggests, has no control over the “comptroller” function, meaning it cannot control the issue of money from the public exchequer.
Access to Records: Audit teams often face inordinate delays in accessing crucial documents from government departments, which can obstruct meaningful audits4 2.
Appointment Process: There is no prescribed procedure or criteria for the appointment of the CAG, giving the executive sole power in the selection. This has led to calls for a more transparent, collegium-type mechanism for appointment5 2.
Expanding Scope: The increasing complexity of governance, including Public-Private Partnerships (PPPs), Sustainable Development Goals (SDGs), and the Goods and Services Tax (GST), requires the CAG to continuously build capacity and amend its audit methodologies5 4.

Key reforms suggested include:

Amending the CAG Act of 1971 to keep pace with modern governance challenges2.
Bringing all PPPs, Panchayati Raj Institutions, and government-funded societies under the CAG’s audit ambit4.
Granting the CAG punitive powers to enforce timely submission of records by government agencies2.

6. Conclusion

The Comptroller and Auditor General of India is an indispensable institution for ensuring public financial accountability. Its independence and comprehensive audit mandate enable it to serve as a powerful check on the executive, promoting transparency and good governance. While the office faces modern challenges, its role as the guardian of the public purse remains central to the functioning of Indian democracy.

Recent Development – 2025

Based on the latest available information, here is a summary of recent data concerning the Comptroller and Auditor General (CAG) of India.

Current Leadership

The current Comptroller and Auditor General of India is Shri K. Sanjay Murthy . He is the 15th CAG of India and assumed office on November 21, 2024, succeeding Shri Girish Chandra Murmu .

Before his appointment as CAG, Shri Murthy, a 1989 batch IAS officer, served as the Secretary in the Department of Higher Education . He has also held senior roles in the Ministry of Housing and Urban Affairs and was the CEO of the National Industrial Corridor Development Corporation Limited .

Recent Initiatives and Partnerships (2025)

In 2025, the CAG’s office has engaged in several strategic initiatives to enhance auditing standards and capacity building:

Strategic Conclave: On April 29, 2025, the CAG conducted a Strategic Leadership Conclave aimed at fostering synergy and innovation within the institution .
Consultation with Finance Commission: The CAG held consultations with the Sixteenth Finance Commission on matters of public finance on March 5, 2025 .
MoUs for Capacity Building: The CAG has signed several Memorandums of Understanding (MoUs) to bolster its capabilities:
- With IIM Kozhikode to enhance performance audit frameworks (April 23, 2025) .
- With the Institute of Chartered Accountants of India (ICAI) for collaborative capacity building programs (April 22, 2025) .
- With the National Institute of Urban Affairs (NIUA) to improve auditing in the urban development sector (March 28, 2025) .
- With IIM Ahmedabad to increase the impact of auditing in the economic sector (March 4, 2025) .
- With BISAG-N to enhance overall audit capabilities through technological support (March 26, 2025) .