Duties and Powers of the Comptroller and Auditor General of India

1. Duties and Powers of the Comptroller and Auditor General of India

2. Duties and Powers of the CAG • The Comptroller and Auditor General of India has an important constitutional duty and role in relation to the accounts of the Union Government, of the State Governments and of the Union Territory (with a Legislative Assembly).

3. Duties and Powers of the CAG • The functions of Comptroller & Auditor General are derived in the main from the provisions of Articles 149, 150 and 151 of the Constitution of India.

4. Session Overview • In this session we will cover the duties and powers of the Comptroller and Auditor General of India in regard to the accounts of the Union, accounts of the States and accounts of the Union Territories having a Legislative Assembly.

5. Learning Objective • By the end of the session, the learner will be able to state the functions, duties and powers of the Comptroller and Auditor General in relation to Government Accounts.

6. Constitutional Position • a high independent statutory authority. • one dignitary who sees on behalf of the legislatures that the expenses voted by them are not exceeded or varied • the money expended was legally available for and applicable to the purpose or purposes to which it has been applied. • Nothing can fetter his discretion or judgment in any manner as to the matters, which he may bring to the notice of the Legislatures. • His oath of office under the Constitution requires him to uphold the Constitution. • For securing the highest standards of financial integrity of the administration and watching the interest of the taxpayer and also for purposes of legislative control over the entire executive Government and its Officers.

7. Appointment and Removal • The Constitution safeguards the independence and freedom of the CAG in a variety of ways. • Article 148 of the Constitution provides that the CAG shall be appointed by the President by warrant under his hand and seal and that he can only be removed from office, if need arises, in like manner and on the like ground as a judge of the Supreme Court. • On his retirement, resignation or removal, the CAG would not be eligible for any other office under the Government. • The pay and allowances of the CAG and the administrative expenses of his office shall be charged upon the Consolidated Fund of India.

8. Duties and Powers • Prescribed in Articles 149, 150 and 151 of the Constitution • Duties powers and condition of service prescribed under the CAG’s Duties Powers and Conditions of Service Act, 1971

9. In relation to accounts • Under Section 10 of the CAG’s DPC Act the CAG is responsible for: • Compiling the accounts of the Union and of each State from the initial and subsidiary accounts rendered to the audit and accounts offices under his control by treasuries, offices or departments responsible for the keeping of such accounts; and • keeping such accounts in relation to any of the matters specified in clause (a) as may be necessary;

10. In relation to accounts • Under section 11 Comptroller & Auditor General responsible for preparation & submission of accounts to the President, Governor of the state and administrative of the territory having legislative assemblies.

11. In relation to accounts • Under section 12 Comptroller & Auditor General shall give information and render assistance to the Union & states; in so far as the accounts for the compilation are keeping of which he is responsible.

12. In relation to accounts • Provided that the President may, after consultation with the Comptroller and Auditor General of India, by order, relieve him from the responsibility • for compiling the accounts of the Union (either at once or gradually by the issue of several orders); • for compiling the accounts of any particular services or departments of the Union:

13. Form of Accounts • Under article 150 of the Constitution, the CAG has an important role in prescribing the ‘form of accounts of the Union and of the States’. The Article states that ‘the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India prescribe. It is clear from the wording of this Article that President can prescribe the form of accounts only after getting or seeking or obtaining the advice of the Comptroller and Auditor General of India.

14. Form of Accounts • The word ‘form’ has a comprehensive meaning so as to include the prescription not only of the broad form in which the accounts are to be kept but also the appropriate heads under which certain transactions or classes of transactions have to be entered, and includes the structure of accounts, classification adopted in the accounts for recording of transactions, classification of transactions, consolidation of transactions and depiction of transaction in the consolidated form in the monthly accounts and in the annual accounts.

15. Form of Accounts • Again, under Section 22 of the Act, ibid, the Central Government may, after consultation with the CAG by notification in the official gazette, make rules for carrying out the provisions of the Act (CAG’s (DPC) Act, 1971) in so far as they relate to the maintenance of accounts.

16. Form of Accounts • These rules may provide for: • the manner in which initial and subsidiary accounts shall be kept by treasuries, offices and departments rendering accounts to the audit and accounts offices; • the manner in which the accounts of any particular service or department of the Union or of a State or of any particular class or character, in respect of which the Comptroller and Auditor General has been relieved from the responsibility of compiling or keeping the accounts shall be compiled or kept,

17. Form of Accounts • These rules may provide for: • the manner in which the accounts of stores and stock shall be kept in any office or department of the Union or of a State, as the case may be’ • any other matter which is required to be, or may be, prescribed by rules.

18. In relation to Audit of Accounts • Section 13: Audit of Expenditure from Consolidated Fund of India; • Section 14: Audit of receipts and expenditure of bodies or authorities substantially financed from Union or State; • Section 15 -Audit of grants or loans given to any body or authority

19. In relation to Audit of Accounts • Section 16 Audit of Receipts; • Section 17-Audit of Stores and Stock ; • Section 18-Powers of the Comptroller and Auditor General of India in connection with audit of accounts; • Section 19-Audit of Government Companies and Corporation

20. In relation to Audit of Accounts • Section 20 of the CAG’s (DPC) Act, 1971 deals with audit of accounts of certain bodies or authorities not covered in earlier sections

21. Certification of Divisible Pool of taxes • Under Article 279 of the Constitution, the CAG is to certify the net proceeds of taxes levied and collected by the Union but assigned to the States, taxes levied and collected by the Union but distributed between the Union and the States and taxes which are levied and collected by the Union but authorized by Parliament to be distributed between the Union and the States. Net proceeds in relation to any tax or duty means the proceeds thereof reduced by the cost of collection.

22. Duties of the Indian Audit and Accounts Department • The Accountants General and the staff of the Indian Audit and Accounts Department shall, under such special and general directions as may be given by the CAG from time to time, perform such duties and functions, as are imposed on or undertaken by him under the provisions of the Constitution, or of any law made by the Parliament.