NEWS – President Droupadi Murmu has appointed K. Sanjay Murthy, a 1989-batch IAS officer, as the new Comptroller and Auditor General (CAG) of India

LEGAL PROVISIONS: CAG ACT, 1971

• Tenure: Holds office for six years or until the age of 65 years, whichever is earlier.
• Resignation: Can resign by addressing a letter to the President.
• Removal: Removed by the President following the same grounds and process as a Supreme Court judge.
• Condition of Service: Salary and service conditions are determined by Parliament and cannot be altered to the CAG’s disadvantage during the term.

DUTIES AND POWERS OF CAG – CONSTITUTIONAL RESPONSIBILITIES

Under Article 149, the Parliament prescribes the duties and powers of the CAG, which include:

• Auditing Expenditures:
  • Consolidated Fund of India and states.
  • Contingency and Public Accounts of India and states.
• Auditing Government Accounts:
  • Trading, manufacturing, profit, and loss accounts.
  • Subsidiary accounts of central and state departments.
• Auditing Revenues: Ensures proper assessment, collection, and allocation of revenue.
• Other Financial Audits:
  • Debt, sinking funds, deposits, advances, and remittance accounts.
  • Stock accounts and other transactions.
• Audit of Authorities on Request: Audits accounts of any authority upon request from the President or Governor (e.g., local bodies).
• Advisory Role: Advises the President on the format of accounts for the Union and states.
• Reporting:
  • Submits audit reports of the Centre to the President for parliamentary review.
  • Submits audit reports of states to the Governor for legislative review.

ROLE OF CAG IN THE PUBLIC ACCOUNTS COMMITTEE (PAC)

• Submitting Audit Reports: Provides three reports to the President:
  • Appropriation accounts.
  • Finance accounts.
  • Public undertakings.
• Examination by PAC:
  • PAC examines these reports and submits its findings to Parliament.
  • Ensures a check on government expenditure.
• Assistance to PAC:
  • CAG assists PAC in securing the accountability of the executive in financial matters.
• Guide and Advisor: Acts as a “guide, friend, and philosopher” of the PAC.
• Corrective Actions: Ensures implementation of corrective measures and reports unresolved matters to the PAC.
• Interpreter and Translator: Bridges the gap between officials and politicians.
• Highlighting Urgent Issues: Prepares and presents a list of pressing matters requiring PAC’s attention.