CAG's Preliminary Report Cannot Be Basis for Criminal Proceedings: Supreme Court

Comptroller and Auditor General of India (CAG) - Key Points

Establishment:

Independent authority under Article 148 of the Indian Constitution.

Primary Role:

Audits all expenditures and receipts of the Central and State Governments.

Audits organizations significantly funded by the government.

Constitutional Provisions:

• Article 148: Deals with the appointment, oath, and service conditions of the CAG.
• Article 149: Defines the duties and powers of the CAG.
• Article 150: Prescribes the form of accounts of the Union and States, advised by the CAG.
• Article 151: Requires CAG's reports on Union accounts to be presented to Parliament.
• Article 279: CAG certifies the calculation of "net proceeds" of taxes.

Appointment and Tenure:

• Appointed by the President of India.
• Can be removed similarly to a Supreme Court Judge.
• Holds office for 6 years or until 65 years of age, whichever is earlier.
• Ineligible for any office under Central or State Governments after retirement.

Functions:

• Audits expenditure from the Consolidated Fund of India and States, Contingency Fund, and Public Accounts.
• Audits accounts of departments and bodies significantly funded by the government.
• Conducts audits for government companies, corporations, and other authorities when required.
• Advises on the form of accounts for the Centre and States.

Reports:

• Submits audit reports to the President for Parliament, including:
  • Audit report on appropriation accounts.
  • Audit report on finance accounts.
  • Audit report on public undertakings.
• Submits state audit reports to the Governor for the state legislature.
• Reports are reviewed by the Public Accounts Committees of Parliament and State Legislatures.

Responsibilities:

• Ensures government spending aligns with parliamentary sanctions.
• Oversees Indian Audit and Accounts Service (IA&AS).

Limitations:

• Limited role in auditing public corporations and government companies.
• Some entities are audited by private auditors with a supplementary audit by the CAG if needed.