Duties and Powers of CAG

Hyderabad: This is in continuation of the last article on Constitutional Bodies and focuses on the functioning and duties of Comptroller and Auditor General. DUTIES AND POWERS OF CAG According to Article 149, the CAG shall perform the duties related to the accounts of the Centre and the States as specified by the Parliament. Accordingly, […]

Hyderabad: This is in continuation of the last article on Constitutional Bodies and focuses on the functioning and duties of Comptroller and Auditor General.

DUTIES AND POWERS OF CAG

According to Article 149, the CAG shall perform the duties related to the accounts of the Centre and the States as specified by the Parliament. Accordingly, the Parliament enacted the CAG Duties, Powers and Conditions of Service Act 1971 which listed the following duties of CAG –

 All receipts into and spending from the Consolidated Fund of India and the States. In other words, CAG audits the accounts of both the Central and the State Governments.

 All transactions relating to the Contingency Funds and Public Accounts of both the Centre as well as States.

 Accounts of all Government companies and Corporations e.g. ONGC, SAIL etc.

 Accounts of all autonomous bodies and authorities receiving Government money e.g. municipal bodies, IIMs, IITs, State Health societies.

 Accounts of anybody or authority on request of the President/Governor or on his own initiative.

 Power to inspect any office or organisation subject to his audit.

 Power to examine all transactions and question the executive.

 Power to call for any records, papers, documents from any audited entity.

 Power to decide the extent and manner of audit.

This act was amended in 1976 with which the CAG was relieved of the responsibility of maintaining accounts of the Central and State Governments and was made responsible to audit the accounts. However, under Article 150, CAG may recommend to the President the manner in which the accounts of the union and the States shall be maintained.

REPORT OF CAG (ARTICLE 151)

CAG submits an annual report on the audit of accounts of the Centre to the President and the States to respective governors of the states. The reports of the CAG are taken into consideration by the Public Accounts Committees (PAC) of the Parliament and the State Legislatures. CAG in turn provides technical expertise to these committees in reviewing reports and therefore, CAG is considered as the friend, philosopher and guide of PAC.

To be continued…
By Deepika Reddy

Director, Shikara Academy
Mobile No. 7702026769