UPSC foundations · Note 099
The Comptroller and Auditor General: auditing public money without controlling it
Study context: GS II — Indian Constitution — historical underpinnings, evolution, features, amendments, significant provisions and basic structure.
The Comptroller and Auditor General, or CAG, is established under Article 148. The CAG is appointed by the President, holds office for six years or until the age of sixty-five, whichever is earlier, and may be removed only in the manner and on grounds like those for a Supreme Court judge. The salary and conditions of service are determined by Parliament and cannot be varied to the CAG's disadvantage after appointment. These protections are designed to secure independence from the executive whose accounts are audited.
The CAG audits the accounts of the Union and the states and of bodies substantially financed by government, and submits reports to the President or the Governor, who cause them to be laid before Parliament or the state legislature. The Public Accounts Committee of the legislature then examines the reports. The CAG's role is to examine whether public money was spent lawfully, for the purpose for which it was granted, and with due economy and efficiency. The CAG does not itself punish officials or recover money; that is for the executive, the legislature and, where a crime is alleged, the courts.
The scope of audit has been debated. The CAG audits not only whether expenditure followed rules, but also whether it achieved value for money, which can bring the auditor into contested questions of policy. Reports on defence purchases, telecom licences and coal allocations have at times become major political controversies. Supporters argue that performance audit is essential when public resources are scarce. Critics argue that an auditor should not second-guess policy choices that belong to elected governments.
The CAG's independence is therefore balanced by a limit: the auditor reports, the legislature scrutinises, and the government responds. Audit reports do not themselves change policy, but they create a public record that Parliament, the press and citizens can use. For civil studies, the CAG is best understood as part of an accountability chain, not as a separate power centre.
Key takeaways
- Article 148 establishes the CAG, appointed by the President for six years or until age sixty-five, removable only like a Supreme Court judge.
- The CAG audits Union and state accounts, reports to Parliament through the President or Governor, and is examined by the Public Accounts Committee.
- The CAG reports and does not punish or recover money; action on reports belongs to the executive, legislature and courts.
Why it matters for civil studies
The CAG illustrates a distinct kind of power: the power to publish a record that others must answer, without the power to decide the answer itself.
Think it through
Should the CAG audit only whether spending followed the rules, or also whether it delivered value for money?
From the Public Notes companion study collection. Editorial context and corrections.