Comptroller And Auditor General

The Comptroller and Auditor General (CAG) of India is one of the most important watchdogs of the Indian government. The office is meant to bring rigour and uniformity to government accounts on the one hand, while independently auditing how public money is spent on the other. It grew out of the system of financial accountability that existed during the British era.

The CAG was given a prominent place in the Constitution of independent India because of its critical role in protecting the honesty, efficiency and effectiveness of government accounts. Its ancestry traces back to the Indian Audit and Accounts Department, first set up in 1753.

In simple terms, Parliament votes to allow the government to raise and spend money, and the CAG checks afterwards whether that money was actually raised and spent the way Parliament approved. The office is created by Article 148 of the Constitution.

Appointment to the CAG

The President appoints the CAG by warrant under his hand and seal for a period of six years or until the age of 65, whichever comes first, according to Article 148 of the Constitution. The CAG can be removed from office in the same manner and on the same grounds as a Judge of the Supreme Court.

Before taking up the duties of the office, the CAG takes an oath before the President, or a person appointed by the President, in the form set out in the Third Schedule of the Constitution.

The service conditions are broadly similar to those of a Secretary to the Government of India, while the office is placed on an equal footing with a Judge of the Supreme Court in matters such as appointment and removal.

The terms of service cannot be changed to the CAG's disadvantage during the tenure. After retirement, a former CAG is not eligible for any further office under the Government of India or a state government.

What are the functions of the CAG?

Because the CAG's work is so sensitive, its independence and freedom to act are treated as essential. The Constitution therefore contains several provisions that protect the CAG's independence. The most important of these are the fixed term of office and the strict procedure for removal.

• The CAG can be removed only by each House of Parliament, supported by a majority of the total membership of the House and by at least two thirds of the members present and voting, on the ground of proved misbehaviour or incapacity.
• The service conditions, salary and pension of the CAG cannot be varied to the CAG's disadvantage after appointment.
• A former CAG cannot hold any office under the Government of India or a state government after retirement, so that no promise of a future post can tempt the office holder to go soft while auditing.

The CAG prescribes the way in which the accounts of the Union and the states are to be kept, with the approval of the President. The office also carries out other duties and powers relating to the finances of the Union and the states, and of any bodies or authorities, as laid down by a law made by Parliament, and reports its findings to the President or the Governors.

The CAG is also responsible for determining and certifying the net proceeds of any tax or duty mentioned in Chapter 1 of Part 12 of the Constitution, under Article 279(1).

In 1976 the CAG's role changed in an important way when the accounting function was separated from the office and handed to the various departments. Since then the CAG's main job has been to audit the accounts kept by the departments and to report the findings to the President.

During the years when Vinod Rai was CAG, the office was regularly in the news for reports that exposed large scale corruption, notably in the 2G spectrum case, the Commonwealth Games scam and the coal block allocation case.

What are the duties that the CAG performs?

The CAG (Duties, Powers and Conditions of Service) Act, 1971, usually called the DPC Act, was passed to give effect to the provisions of the Constitution. Under its various provisions, the CAG's duties include the audit of the following.

• Receipts and expenditure from the Consolidated Fund of India, as well as the Consolidated Funds of states and union territories with legislative assemblies.
• Government companies, which are governed by the Companies Act, 2013, as amended.
• Bodies and authorities substantially financed from the Consolidated Funds of the Union and the states, and anyone or any authority that the CAG is asked to audit even if it is not mainly funded from the Consolidated Fund.
• Trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept in any government department, along with the store and stock accounts kept in government offices and departments.
• Corporations set up by, or under, laws made by Parliament, in line with the provisions of those laws.
• Government grants and loans given to organisations and authorities for specific purposes.
• Entrusted audits carried out under Technical Guidance and Support (TGS), such as audits of Panchayati Raj Institutions and Urban Local Bodies.

Removal of the CAG

Only proved misbehaviour or incapacity, as decided by both Houses of Parliament, can lead to the removal of the CAG. The CAG leaves office on reaching the age of 65, or at the end of the six year term, whichever comes first, or when removal proceedings are completed.

Why the CAG still matters today

The CAG is not just an exam topic. It is a living institution whose reports still shape national debate. In November 2024 a new office holder took charge: K. Sanjay Murthy, a 1989 batch civil servant, was sworn in on 21 November 2024 as the fifteenth CAG of India, succeeding Girish Chandra Murmu. The office simply carried on as the Constitution designed it, one holder handing over to the next.

Its audits keep landing on the news pages. In December 2025 the CAG placed a fresh set of reports before Parliament. One performance audit of the government's flagship skilling scheme, the Pradhan Mantri Kaushal Vikas Yojana, found that close to 94 per cent of the beneficiary records it checked had missing or clearly fake bank details, including dummy email IDs and placeholder account numbers such as "111111". A separate audit of the Railways found that 20,304 safety related works were still unfinished in 2024 to 2025, raising hard questions about how safety funds were being used.

These reports do exactly what the office was built to do: they follow the taxpayer's rupee and report back to Parliament, just as the CAG did in the Vinod Rai years with the 2G, Commonwealth Games and coal cases. A live debate today is how closely Parliament actually studies these findings once they are tabled, because an audit only bites if someone acts on it. That is why the CAG matters far beyond the syllabus. To see how audit, the budget and Parliament fit together, explore our Indian Polity notes, browse the wider study notes library, and follow how India's institutions connect on the Learnacy Hub.

Sources

1. Comptroller and Auditor General of India, official site, current CAG K. Sanjay Murthy: https://cag.gov.in/en/page-cag-of-india
2. The Print, CAG flags gaps in the PMKVY skilling scheme, including dummy emails and placeholder bank accounts (December 2025): https://theprint.in/india/education/only-41-placed-age-education-ignored-cag-flags-gaps-in-modi-govts-flagship-upskilling-scheme/2812644/
3. The CSR Universe, CAG audit finds bank account details missing or invalid in about 94 per cent of PMKVY beneficiary records: https://thecsruniverse.com/articles/cag-audit-bank-account-details-missing-or-invalid-in-94-of-pmkvy-beneficiary-records
4. Business Standard, CAG report finds 20,304 railway safety works unfinished in FY25: https://www.business-standard.com/india-news/cag-report-finds-20-304-railway-safety-works-remain-unfinished-in-fy25-126081202135_1.html

Key takeaways

• The CAG is a constitutional office (Article 148) that serves as an independent watchdog over government accounts and public expenditure
• The President appoints the CAG for six years or until age 65; removal requires proved misbehaviour or incapacity approved by both Houses of Parliament
• Constitutional protections for CAG independence include fixed term, salary that cannot be changed disadvantageously, and post-retirement ineligibility for government office
• Since 1976, the CAG's main function is auditing accounts kept by government departments (accounting was separated out)
• The CAG audits the Consolidated Funds of India and states, government companies, corporations, grants, and entities substantially financed by government funds

Test yourself

What body appoints the CAG and what is the term of office?

The President appoints the CAG by warrant under his hand and seal for a period of six years or until the age of 65, whichever comes first.

How can the CAG be removed from office?

The CAG can be removed only by each House of Parliament, supported by a majority of the total membership and by at least two-thirds of members present and voting, on the ground of proved misbehaviour or incapacity.

What major change happened to the CAG's role in 1976?

In 1976, the accounting function was separated from the CAG's office and handed to the various departments. Since then, the CAG's main job has been to audit the accounts kept by the departments and report the findings to the President.