CAG of India – First, Present CAG of India 2023, List of CAG UPSC PDF

Present CAG of India 2023

Girish Chandra Murmu has been named the Present CAG of India 2023 and has taken office on August 7, 2020. Before him, on September 25, 2017, Rajiv Mehrishi took over the CAG position in his place. Earlier, Murmu was Lieutenant Governor of Jammu and Kashmir. The CAG of India has the same ranking as a Judge of the Supreme Court of India.

CAG UPSC Notes

Girish Chandra Murmu is the Inter-Parliamentary Union’s external auditor and the 14th Comptroller and Auditor General of India. He also serves as the chairman of the Asian Organization of Supreme Audit Institutions and the United Nations Panel of External Auditors. He succeeded the Auditor General of the Philippines to become the WHO’s external auditor for the year 2020–2023.

What is CAG?

According to Article 148 of the Indian Constitution, the Comptroller and Auditor General of India is an independent constitutional body. The competence of the CAG’s office is established by Article 148 of the Indian Constitution. Regarding the founding and authority of the Comptroller and Auditor General, it claims the following:

• The President of India appoints the Comptroller and Auditor General, who can only be dismissed from office in the same way and for the same reasons as a Supreme Court judge.
• The person selected for this post is to take an oath of office in front of the President or any other official who the President’s office appoints.
• The Second Schedule contains the salary, service requirements, absences, pension, and retirement age as set by the Indian Parliament, ensuring that neither the compensation nor the service requirements would be changed in a way that disadvantages the incumbent throughout their tenure.
• After their term ends, the CAG is ineligible to hold any additional positions within the Union of India or any State Government.
• The provisions of the Indian Constitution, any Acts of Parliament, as well as the service requirements for the Indian Audits and Accounts Department, are susceptible to the powers and duties of the CAG. The President would establish the regulations for these after consulting the incumbent.
• All administrative costs for this office, such as wages, allowances, and pensions, would be allocated to the Consolidated Fund of India.
• Unless they reach 65 years old early, the incumbent is chosen for a term of six years.

History of CAG of India

The Comptroller and Auditor General office came into presence in 1858. During the reign of the British Empire. The first CAG of India was Sir Edward Drummond who was appointed in 1860 by the East India Company. The ‘Auditor General of India’ came into existence after the release of the Government of India Act 1935.

Narahari Rao was the first Comptroller and Auditor General of India. Under his 5 years scheme, he revamped and strengthened the auditing department. Under the constitution of independent India Articles 148, 149, 150, and 151 were used to define the structure and working of the CAG of India.

CAG Full Form

CAG Full Form is the Comptroller and Auditor General of India. It is an independent body established for internal and external audits of Central and State government expenses. CAG of India in manners of powers and other functions is on the same ground as the judge of the Supreme Court of India.

Duties of the Comptroller and Auditor General of India include maintenance of financial statements of union and state governments, audit transactions, determination of net profit and total income, and a lot more. CAG of India can submit their legal reports directly to the Parliament as they have the power to examine and interrogate the management on their different facets.

CAG Full Form in Hindi

CAG का हिंदी में फुल फॉर्म भारत का नियंत्रक और महालेखा परीक्षक है। भारत के नियंत्रक और महालेखा परीक्षक, सरकार के सर्वोच्च अधिकारी हैं। साथ ही वे केंद्र और राज्य सरकार के खर्च के आंतरिक और बाहरी ऑडिट के प्रभारी हैं।

भारत के नियंत्रक और महालेखा परीक्षक अनुच्छेद 148 के अनुसार एक स्वतंत्र संवैधानिक निकाय है। भारत का CAG भारतीय लेखापरीक्षा प्रणाली और लेखा विभाग का प्रमुख है । गिरीश चंद्र मुर्मू को भारत का वर्तमान CAG नामित किया गया है और उन्होंने 7 अगस्त, 2020 को पदभार ग्रहण किया है।

Powers of CAG of India

This Comptroller and Auditor General of India office has been granted many privileges and powers that help with the auditing process to enable it to carry out its tasks successfully. The CAG of India has the following principal powers:

Any office of the companies that are the focus of its audit may be inspected by the Comptroller and Auditor General or members of his staff. He and his team can carefully examine government dealings and interrogate the management on their different facets.

• The CAG may reconsider his complaints after carefully examining the operations or, if he believes them to be severe, include them in his report that is delivered to Parliament.
• He has complete access to all financial documents, including papers, books, and documents, to help the office carry out this duty efficiently. Furthermore, the CAG of India is free to request pertinent data from any individual or group. His legal authority to request information and financial records was confirmed by the order issued by the Government of India in 1936 to implement the Act of 1935.
• The practice of giving him free access to documents and information continues as of the present.
• However, a change was made in 1954, requiring that confidential documents be given to the CAG by name and restored as soon as the task is complete if they implicate the central government.

Role of Comptroller and Auditor General of India

This office’s responsibility is to respect the financial administration laws passed by Parliament as well as the provisions of the Indian Constitution. Via CAG reports, the executive’s accountability to the Parliament in the area of financial operations is ensured. The office oversees and represents the Parliament, conducting expense audits on its behalf.

The CAG must determine whether the funds listed in the accounts as having been spent were legitimately accessible for and relevant to the service or objective for which they have been allocated or charged, as well as if the spending complies with the legislation that governs it.

• The agency has the authority to conduct a proprietary audit, examining the “wisdom, fidelity, and economy” of government spending and making recommendations regarding its squandering.
• Contrary to the regulatory and legal audit, which the CAG is required to do, the propriety audit is at the CAG’s discretion.
• The secret service expense places a restriction on the CAG’s ability to conduct audits. In this respect, the CAG cannot request specifics of the expenses paid by the executive agencies; instead, he must consider certification from the appropriate administrative agency attesting to the expenses incurred as stated under his supervision.

Functions of CAG of India

According to the Indian Constitution, this position should also serve as the Auditor General. In reality, the incumbent official is merely acting in the capacity of an Auditor-General rather than a Comptroller. To put it another way, the Comptroller and auditor general of India office has no jurisdiction over the release of funds from the public treasury.

Numerous agencies are permitted to draw funds by issuing checks without particular approval from the CAG, who is solely engaged at the audit stage after the spending has already occurred. The Comptroller and Auditor General of India (Duties, Powers, and Conditions of Service) Act, 1971 outlines the CAG’s authority in relation to audits. This act permits the CAG to audit:

• All income and expenses from the Consolidated Fund of India and the States and Union Territories.
• All operations pertaining to the Public Accounts and Contingency Funds, as well as all manufacturing, trade, balance sheet, profit-and-loss, and other subsidiary entities maintained by any department.
• All government departments and branches’ inventories and storage.
• Accounts for all government organizations created under the 1956 Indian Companies Act.
• The financial statements of all union government entities whose Acts require CAG audits.
• Accounts for all agencies and organizations that receive significant funding from the Consolidated Fund Accounts of any agency that are requested by the Governor or President or initiated by the CAG itself while not being significantly financed by the government.

Duties of CAG

The duties and authority of this position are outlined in Articles 148 to Article 151 of the Indian Constitution. An overview of the different topics covered by these Constitutional Articles is provided below:

• Article 149: It defines the powers and duties of the Comptroller and Auditor, like carrying out the responsibilities and exercising the jurisdiction with regard to the financial statements of the Union government, the states, and any other entities or authorities, as may be required by any law passed by the Parliament.
• Article 150: The Union of India and the States’ Form of Accounts to establish the format in which the Union and the States’ accounts are to be maintained, with the President’s permission.
• Article 151: In accordance with Article 279(i) of the Constitution, the CAG is required to determine and verify the net profits of any taxation or duty stated in Chapter I of Part XII of the Constitution. In addition to such constitutional clauses and the Duties Powers and Conditions of Service Act of 1971, it is important to note that, prior to 1976, the CAG was given a dual mandate, combining accounting and auditing. The CAG’s responsibility is to audit transactions because of the separation of accounting and audit in 1976. Since 1976, the Indian Civil Accounts Service has assisted different departments in performing their own accounting.

Constitutional Provisions for CAG of India

Constitutional Provisions for the Comptroller and Auditor General of India can help one understand the power, authority, and duties of a CAG. Below, a tabulated list has been prepared to brief about the constitutional provisions of India.

Articles for the CAG of India	Provisions
Article 148	Relate to the CAG oath, appointment, and service requirements
Article 149	Focuses on the responsibilities and authority of India’s comptroller and auditor general
Article 150	Specifies that the President can establish the form in which the State and Union accounts are to be kept with the CAG’s advice
Article 151	Stipulates that the president would arrange for the CAG of India’s findings about the Union’s accounts to be tabled in front of each Parliamentary House
Article 279	Deals with the CAG of India determining and certifying the computation of “total income,” and his or her certificate is definitive
III Schedule	The Supreme Court judges and the CAG of India must take an oath or affirmation in a specific format while taking office, according to Section IV of the Third Schedule of the Indian Constitution

List of CAG of India

Narahari Rao was the first CAG of India from 1948 to 1954. In the years following independence, V. Narahari Rao worked as an Indian government servant for the Indian Audit and Accounts Service.

For his achievements in the civil service, the Indian government gave him the Padma Bhushan, the third-highest civilian honor, in 1954. A comprehensive list of CAG of India has been curated below:

List of CAG of India (1950–present)
No.	Tenure Began	Tenure Ended	Comptroller and Auditor General of India
1	1950	1954	V. Narahari Rao
2	1954	1960	Anil Kumar Chanda
3	1960	1966	A. K. Roy
4	1966	1972	S. Ranganathan
5	1972	1978	A. Bakshi
6	1978	1984	Gyan Prakash
7	1984	1990	Tirlok Nath Chaturvedi
8	1990	1996	C. G. Somiah
9	1996	2002	V. K. Shunglu
10	2002	2008	Vijayendra Nath Kaul
11	2008	2013	Vinod Rai
12	2013	2017	Shashi Kant Sharma
13	2017	2020	Rajiv Mehrishi
14	2020	Incumbent	Girish Chandra Murmu

Composition of CAG Office

The Comptroller and Auditor General of India are governed by the Indian Audits and Accounts Department (IADD). The CAG of India is followed by 5 deputy comptrollers and the auditor general of India. Check out the apprehensive hierarchy of the office of CAG here:

• CAG
• Deputy CAG
• Secondary Deputy CAG
• Director General
• Principal Director
• Deputy Director

Issues Faced by CAG of India

There are many issues faced by CAG of India for the smooth functioning of their office. One of the problems faced by the Comptroller and Auditor General of India is due to the increase in corruption, it is getting difficult for CAG to audit reports and detect fraudulent data.

No criteria have been prescribed for the appointment of CAG in the constitution. The President is solely responsible for the appointment and therefore this is not the right practice which is completely opposite to the rules pervasive in the world.

• Shorter tenure acts as a hindrance to the smooth functioning of the office due to a lack of experience.
• No recognition is given to the work of CAG and their audit reports.
• They are not given complete freedom as it is given in the United Kingdom. This acts as a barrier to the workflow of CAG of India.

Audit Jurisdiction of CAG of India

There is a set of jurisdictions on which CAG works. Following bodies come under the audit jurisdiction of CAG of India. CAG of India works on the audit jurisdiction of the below-mentioned fields and submits its audit report to PAC annually.

• State and Union Government;
• Government-financed bodies;
• Trusts and Non-Profit Organizations;
• Central PSUs;
• ULBs and PRIs;
• Government Institutions.

CAG Audit Reports

CAG Audit Reports are reports submitted by CAG to the Public Accounts Committee. PAC analyses and audits the revenue reports submitted by the Comptroller and Auditor General of India.

These are the three types of audit reports submitted by CAG that deal with particulars of public audits.

• Audit Report on Funding Accounts
• Audit Report on Public Projects
• Audit Report on Financial Accounts

Difference Between Indian CAG and British CAG

Power and duties play an important role in the difference between Indian CAG and British CAG. Check out the detailed tabulated data to have a better apprehension of Indian CAG and British CAG.

Indian CAG vs British CAG

Indian CAG	British CAG
CAG of India is given the title of Comptroller and Auditor but they perform the role of Auditor General only.	In the United Kingdom, CAG is given the authority of comptroller and auditor both.
The first Comptroller and Auditor General of Indian CAG was V. Narahari Rao who was appointed in 1950.	The first Auditor General of India (under British rule) was Sir Edward Drummond who was appointed in 1860.
CAG is not a member of Parliament	CAG is a member of Parliament
CAG audits the accounts and expenditures and submits reports to PAC	In Britain, money can not be withdrawn without the approval of the CAG

Role of Public Accounts Committee (PAC) in CAG

Public Accounts Committee also known as PAC is one of the three financial committees of Parliament. The Parliament constituted PAC to audit the revenue and expenditure of the government. The Public Accounts Committee was established in 1921 as a consequence of the Montague- Chelmsford Reforms. The Public Accounts Committee (PAC) consists of 22 members in the committee. Out of which 15 members are from Lok Sabha and 7 members are from Rajya Sabha.

Currently, the chairman of the Public Accounts Committee is Shri Adhir Ranjan Chowdhury. It is a financial committee that analyzes and audits the reports submitted by the Comptroller and Auditor General of India. CAG submits its reports to the President and therefore it is forwarded to PAC by the president. The audit reports analyzed by PAC include Finance Accounting Reports, Public Project Reports, and audit reports on funding accounts.

CAG UPSC

The Comptroller and Auditor General of India is an important topic included under the section of Indian Polity. Questions are raised from CAG of India in UPSC Prelims as well as Mains. Here we have provided comprehensive CAG UPSC Notes which include all important details such as appointment, roles, powers, and more.

You can also download NCERT or UPSC Books for Polity from here to build a strong proficiency in this topic. For better preparation, candidates can practice question papers as well. You must try to solve papers within the given time limit to have an upper hand in the examination.

CAG of India UPSC Questions

UPSC Prelims Question: Which one of the following duties is NOT performed by the Comptroller and Auditor General of India? (A) To audit and report on all expenditures from the Consolidated Fund of India, (B) To audit and report on all expenditures from the Contingency Funds and Public Accounts, (C) To audit and report on all trading, manufacturing, profit, and loss accounts, (D) To control the receipt and issue of public money, and to ensure that the public revenue is lodged in the exchequer.
Answer: To control the receipt and issue of public money, and to ensure that the public revenue is lodged in the exchequer

UPSC Prelims 2012 Question: In India, other than ensuring that public funds are used efficiently and for their intended purposes, what is the importance of the office of the Comptroller and Auditor General (CAG)? (1) CAG exercises exchequer control on behalf of the Parliament when the President of India declares a national emergency / financial emergency, (2) CAG reports on the execution of projects or programs by the ministries are discussed by the Public Accounts Committee, (3) Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances, (4) While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/ are correct? (A) 1, 3, and 4 only, (B) 2 only, (C) 2 and 3 only, (D) 1, 2, 3 and 4
Answer: 2 and 3 only

Question: Consider the following statements : (i) It shall be the duty of the Comptroller it all and Auditor-General to audit all receipts which are payable into the Consolidated Fund of India. (ii) The Comptroller and Auditor General shall have authority to audit and report on the accounts of stores or stock kept in any office or department of the Union or a state. Choose the correct option: (1) Both (i) and (ii) are incorrect, (2) Both (i) and (ii) are correct, (3) (i) is incorrect but (ii) is correct (4) (i) is correct but (ii) is incorrect (5) Not Attempted
Answer: Both (i) and (ii) are correct

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