What are duties and powers of CAG?
Q. What are duties and powers of CAG?
1) Parliament can define duties of CAG.
2) The net proceeds of any tax or duty is decided and certified by CAG.
3) But this certification is not final.
4) CAG audits the accounts of any other authority on request of the President.- Published on 15 Mar 17
a. 1, 2, 4
b. 1, 2, 3
c. 2, 3, 4
d. 1, 3
ANSWER: 1, 2, 4
Duties and Powers of CAG -
- Article 149 - Parliament is authorized to define duties and functions of CAG in relation to the accounts of the Union and of the states and of any other authority or body.
- CAG’s (Duties, Powers and Conditions of Service) Act, 1971 was amended in 1976 to separate accounts from audit in the Central Government.
The duties and functions of the CAG are -
1. CAG audits the accounts related to all expenditure from -
(a) the Consolidated Fund of India;
(b) consolidated fund of each state;
(c) consolidated fund of each Union Territory having a Legislative Assembly;
(d) Contingency Fund of India;
(e) Public Account of India;
(f) Contingency fund of each state;
(g) Public account of each state;
(h) trading, manufacturing, profit and loss accounts of any department of the Central Government and state governments etc.
2. He audits the receipts and expenditure of -
(a) centre and each state;
(b) all bodies and authorities substantially financed from the Central or state revenues;
(c) government companies; and
(d) other corporations and bodies, when required.
3. When requested by the President or Governor, CAG audits the accounts of any other authority like local bodies etc.
4. Article 150 - The accounts of the Union and of the States shall be kept in such form as the President on the advice of the Comptroller and Auditor-General of India, may prescribe.
5. Article 151 - The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the President, who shall cause them to be laid before each House of Parliament.
6. Article 151 - The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.
7. Article 279 - The net proceeds of any tax or duty is decided and certified by CAG, whose certification is final.
8. He is philosopher and guide of the PAC of Parliament of India.
9. CAG compiles and maintains the accounts of state governments but not of Union Government. He was relieved of this duty in 1976.
10. This was because there was separation of accounts from audit.
- Appropriation accounts - This compares the expenditure sanctioned by the Parliament through the Appropriation Act with the actual expenditure.
- Finance accounts - They give annual receipts and expenditure of the Union Government.
3 audit reports are submitted by CAG to the President -
1. audit report on appropriation accounts;
2. audit report on finance accounts; and
3. audit report on public undertakings;
- When President lays these reports before both houses of the Parliament, the Public Accounts Committee examines them and reports its findings to the Parliament.