Govt Expenditure Audited by CAG

Prelims level : Economy Mains level : Government Budgeting.
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In News:

  • More than 50% of the expenditure under 36 major heads of the government’s spending in 2017-18 was classified as ‘other expenditure’ thereby “rendering the accounts opaque”, the Comptroller and Auditor General (CAG) said in a report tabled in Parliament.


  • The CAG also noted that several heads of cess that had been collected had not been disbursed to the appropriate funds for spending. The quantum of monies lying in limbo like this was a substantial Rs. 2.18 lakh crore.


  • Article 148 of the Constitution lays down that the Comptroller and Auditor General of lndia would be appointed by the President by warrant under his hand and seal. The CAG will hold office for a period of six years or till he attains the age of 65, whichever is earlier. And he can be removed from office only in the same manner and on the same grounds as a Judge of the Supreme Court i.e. by impeachment in Parliament
  • At the same time the CAG has been made ineligible for any other office under the Government of India or any state Government.
  • The salary etc. of CAG has been equated with the Judges of the Supreme Court. The Article 148 provides that the administrative expenses of the office of CAG are to be charge upon the Consolidated Fund of India (CFI).

Audit Role of CAG:

  • Audit is the principal instrument to ensure the financial accountability of the Executive to the Legislature of the Union and State. The Comptroller and Auditor Genera1 in India, has been, made responsible by the Constitution. To conduct the audit of the transactions of the Union and the States and Union Territories with Legislature
  • The CAG is also empowered to audit and report on ail expenditure from the contingency funds and public accounts of the Union and of the States. The CAG shall have also power to audit and report on all trading and manufacturing, profit and loss accounts, etc., kept by any department of Union or a State. The CAG has also the power to audit the receipts and expenditure of the Union and each State, all bodies and authorities, substantially financed, from the Union or State revenues, Government Companies other corporations or bodies.
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