Comptroller & Auditor General of India (Notes)

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1. CAG

   • Article 148 provides for an independent office of the Comptroller and Auditor General of India (CAG), who audits all receipts and expenditure of the Government of India and the state governments too.
   • He is the head of the Indian Audit and Accounts Department. (Indian Audit and Accounts Department was created during the British rule in 1753.)
   • He is the guardian of the public purse.

2. Appointment and Term

   • Appointed by president.
   • holds office for a period of six years or upto the age of 65 years, whichever is earlier.
   • He can resign any time from his office by addressing the resignation letter to the president.
   • He can also be removed by the president on same grounds and in the same manner as a judge of the Supreme Court. In other words, he can be removed by the president on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehaviour or incapacity.

The role of CAG in the auditing of public corporations is limited. Broadly speaking, his relationship with the public corporations falls into the following three categories:

Some corporations are audited totally and directly by the CAG, for example, Damodar Valley Corporation, Oil and Natural Gas Commission, Air India, Indian Airlines Corporation, and others.

2. Some other corporations are audited by private professional auditors who are appointed by the Central Government in consultation with the CAG. If necessary, the CAG can conduct supplementary audit. The examples are, Central Warehousing Corporation, Industrial Finance Corporation, and others.

3. Some other corporations are totally subjected to private audit. In other words, their audit is done exclusively by private professional auditors and the CAG does not come into the picture at all. They submit their annual reports and accounts directly to the Parliament. Examples of such corporations are Life Insurance Corporation of India, Reserve Bank of India, State Bank of India, Food Corporation of India, and others.