BharatNotes What is Comptroller and Auditor General Functions?
The Comptroller and Auditor General (CAG) of India is the supreme audit institution of the country, created by Article 148 of the Constitution. Its functions are the duties it performs to audit government accounts and uphold legislative control over public finances. While the Constitution establishes the office (Articles 148-151), the substantive functions are prescribed by the CAG's (Duties, Powers and Conditions of Service) Act, 1971 — the DPC Act. The CAG is appointed by the President and enjoys security of tenure equivalent to a Supreme Court judge, holding office for six years or until the age of 65, whichever is earlier.
Core Functions
| Function | Constitutional / Statutory Basis |
|---|---|
| Audit all expenditure from the Consolidated Fund of India, States and UTs with legislatures | Section 13, DPC Act, 1971 |
| Audit receipts and expenditure, trading and manufacturing accounts, stores and stock | Sections 16-17, DPC Act |
| Audit government companies and corporations | Sections 19-20, DPC Act (read with Companies Act, 2013) |
| Audit bodies and authorities substantially financed from government funds | Section 14, DPC Act |
| Certify the "net proceeds" of taxes and duties (certificate is final) | Article 279 |
| Submit audit reports to the President / Governor for tabling in legislature | Article 151 |
The CAG conducts three broad types of audit: financial audit (accuracy of accounts), compliance/regularity audit (legality and propriety of spending), and performance audit (economy, efficiency and effectiveness of schemes).
Significance
The CAG is the linchpin of financial accountability. Its reports are examined by the Public Accounts Committee (PAC) and the Committee on Public Undertakings, converting technical audit findings into legislative scrutiny of the executive. A crucial conceptual point for aspirants: unlike the British Comptroller, the Indian CAG only audits spending after it occurs — it has no "control" function over the issue of money from the Consolidated Fund. Dr B.R. Ambedkar regarded the office as the most important guardian of the public purse, more vital even than the judiciary in protecting against financial impropriety.
Independence Safeguards
To ensure impartial audit, the Constitution insulates the CAG: removal is possible only by the same process as a Supreme Court judge (proved misbehaviour or incapacity, on an address by both Houses); salary and service conditions cannot be altered to the CAG's disadvantage after appointment; the administrative expenses of the CAG's office are charged on the Consolidated Fund (non-votable); and the CAG is barred from any further office under the Government of India or any State after demitting office.
Current Status
K. Sanjay Murthy is the present CAG, having assumed office on 21 November 2024, succeeding Girish Chandra Murmu. Murthy is an IAS officer of the 1989 batch who previously served as Secretary in the Department of Higher Education. The institution continues to expand into IT and environmental performance audits while reporting to Parliament under Article 151.
UPSC Angle
This is a foundational constitutional-bodies topic. Master the article numbers, the audit-versus-control distinction, the CAG-PAC linkage, and the independence safeguards — these recur across Prelims factual questions and Mains accountability essays.
