CAG: A little-known authority


The strength of an institution for subsequent follow-up action on its findings, reports, suggestions and orientations, for implementation, depends on the weight of its source. Its credibility is based on the authenticity of its source. This is why an appeal from any judicial / executive magistrate or constitutional authority is taken differently from others. This is true not only for depositions or confirmatory statements, inquiries, inquiries, polls but also for research and development work.

The more powerful the institution and the more authentic its conclusions, the more application it demands in practice. The key factor is its awareness among the people. One of these little-known authorities is the “Auditor of the Nation” – the Comptroller and Auditor General of India (CAG).

It is incredibly true and pitiful to see some officers questioning the status and mandate of the CAG. The confirmation of the CAG as the central constitutional authority at the country level for audit work under the direct control of the President of India is news to them.

The authority of the CAG derives mainly from the provisions of Articles 148 to 151 of the Constitution of India, in addition to parliamentary laws on the CAG, and the conventions and practices followed before the start of the Constitution.

Parliament passed the regulations of the CAG (Duties, Powers and Conditions of Service) Act in 1971, which entered into force on 12-15-1971, with amendments made from time to time.

In the interval between 26-1-1950 (with the adoption of the Constitution) and 14-12-971, the CAG exercised functions and exercised the powers available to the Auditor General of India immediately before the entry into force of the Constitution under the Order of the Government of India (Auditing and Accounts), 1936.

Article 148 deals with the appointment of the CAG by the President of India. Article 149 concerns its duties and powers with regard to the accounts of the Union or of the States, of the territories of the Union and of any other body or authority which may be prescribed by law. Article 150 concerns the forms of accounts of the Union and of the States.

Article 151 concerns the submission of Union / State audit reports to the President / Governor for filing with the Union / State, as appropriate. The 1971 DPCS law of the CAG consists of 26 sections subdivided into four chapters. Chapter I contains sections 1 and 2 relating to the short title and definition. Chapter II covers Articles 3 to 9 prescribing the term of office, salary, leave, pension and other conditions of service.

Chapter III comprises 11 sections from 10 to 20 dealing with the duties and powers in matters of auditing the expenditure and revenue of the Union and of the States and bodies and authorities established by or by virtue of the law. Chapter IV is Miscellaneous and contains Articles 21 to 26 of the Law.

For the requirement of instantaneous range of DDOs and the limitation of space, we will briefly recap here the important most used chapter III of the law which is the following one.

a) Article 10 deals with the responsibility for drawing up the accounts of the Union and of the States.

b) Article 11 deals with the responsibility of preparing the appropriation and financial accounts of the Union and of the States and submitting them to the President / Governor.

c) Article 12 provides for the provision of assistance to Union / State governments in the preparation of the budget and other requested information.

d) Article 13 deals with the obligation to audit all expenditure of the Consolidated Fund of India, of each state, each territory of the Union having a Legislative Assembly, auditing of conditional funds, public accounts , including trade, manufacturing, profit and loss account and balance sheet kept in each department of the Union or of a State or territory of the Union in addition to reporting in each case of expenditure control by him.

e) Article 14 concerns the verification of the receipts and payments of bodies or authorities financed largely by grants or loans from the Consolidated Fund of India or of any State or territory of the Union with a report on this.

f) Article 15 defines the functions in case of grants or loans to authorities or bodies for specific purposes from the Consolidated Fund of India / State or Union Territory.

g) Article 16 deals with the verification of revenue in the Consolidated Fund of India or of each State or territory of the Union and of a report thereon.

h) Article 17 concerns the verification of all stocks and stores of the Union or of each State and territory of the Union with a report thereon.

i) Article 18 gives the power to inspect any accounts office under the control of the Union or of the States, including public treasuries, to inspect documents, books, papers, etc., to ask questions and request information from the head of the office. Subsection 2 of section 18 requires the person in charge of the office or department whose accounts are to be inspected and audited by the CAG, to make every effort to carry out such an inspection and to comply requests for information in as complete a form as possible. possible and with all reasonable care.

j) Article 19 (i) deals with the obligations relating to the audit of the accounts of state-owned companies under the Companies Act 1956, (ii) the obligations relating to the audit of the accounts of companies ( not being companies) established by law to be carried out in accordance with the respective laws, & (iii) the duties when a request comes from the Union / State government to audit the accounts of a company established by law made by Parliament / State Legislature.

k) Section 20 relates to duties relating to the audit of a body or authority not entrusted to the CAG other than those provided for in section 19 by any Act of the Parliament / State Legislature to Union / State government request on terms and conditions agreed between GAC and Union / State government or authority.

The CAG serves as a tool and a vehicle through which people through the legislature are used how tax money is used and the bureaucracy is held to account to the public. In addition to the classic basis of expenditure and revenue auditing, it has been suggested that the field be extended to other areas of public life. Therefore, the country has now moved to the concept and conduct of security audit, workforce audit, university audit, research and development audit, curriculum audit, social audit. ” evaluation, program audit, audit of achievements, etc. The audit service itself is within the scope of the audit by the CAG’s director of audit and inspection. In about 33 countries there are Courts of Auditors. If, with all its strengths, weaknesses, opportunities and threat analyzes, the CAG reports on the functioning and accounts of the above-mentioned governments, organs, authorities and central / state enterprises are implemented for a five-year plan, the The next five year interval will be cleaned of all unwanted findings for inclusion in the ACG annual report, except for procedural omissions. Embezzlement and embezzlement will disappear, scams and scandals will disappear, government spending and revenue will be transparent, deficit financing / budgeting will be depleted to a satisfactory level required for a stable growing economy.

The author is a former senior audit officer and consultant in the office of AG Srinagar.

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