Comptroller and Auditor General of India

Article 148 ·         CAG – Guardian of the public purse

·         Control as the entire finance system

·         Appointed by POB/Oath by POI/65 years/6 years/resign removed by POI – manner as a judge of the Supreme Court.

Independence ·         Removal process = security of tenure

·         Salarly & all = From C.F.I. = Judge of SC = 250,000 €

·         Not eligible for further office

·         Nothing –  pension, leave for absence or salary can be altered after appointment can take part in Parliament but not vote.

Art 149Duties and Powers of the CAG Parliament enacted the CAG’s (Duties, Powers and Conditions of Service) Act, 1971.- This Act was amended in 1976 to separate accounts from audit in the Central government.

1.       To audit related to CFI, consolidated fund of state and territory.

2.       All expenditure from CFI, consolidated fund, Public current fund.

3.       Trading balance sheet Manufacturing and other subsidiary accounts

4.       All Receipt & expenditure govt related debt, sinking funds, deposits fund.

5.       Acc. Of any Authority when required by POI & Governor ( the audit of local bodies)

6.       Audit – report – POI & GOI

7.       Form in which account should be kept ( Art. 150)

8.       Net proceed of any Tax duty (Art 151)

9.       Guide, friend philosopher of the PAC

Role Of CAG 1.       To upload Constitution of India and laws of Parliament in the field of financial administration.

2.       Agent of parliament & Conduct audit on the behalf of the Parl.

3.       To ascertain whether money bill shown in account has been dispersed properly.

4.       wisdom, faithfulness, expenditure, legal and regulatory audit, which is obligatory on the part of the CAG

5.       No control over the issue of money from CFI & many are authorised to draw money by issuing cheques without specific Authority of CAG.

6.       Role of CAG in govt company, audit is limited, govt company audit by pvt auditors by governor on the advice of CAG.

Criticism Function of CAG

·         In large measure an inheritance from colonial rule.

·         Auditory had a repressive and neglecting influence.

·         Parl. got an upper hand in Auditing & failed to define the function of CAG.

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