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 CAGs Duties Powers and Conditions of
  Service Act, 1971

9
In relation to accounts

• Under Section 10 of the CAGs 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 (CAGs (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 CAGs (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.