Duties and Powers of the Comptroller and Auditor General of India

Introduction 

The Comptroller and Auditor General of India (CAG) is one of the most vital constitutional authorities in India’s democratic setup. Established under Articles 148 to 151 of the Indian Constitution, the CAG is the Supreme Audit Institution of India, responsible for auditing public expenditure and ensuring government accountability. The office plays a central role in strengthening transparency and good governance through independent financial oversight. 

Constitutional and Legal Framework 

• The CAG’s powers and responsibilities are rooted in Article 149 of the Constitution of India,1950 which mandates that the CAG perform duties related to the accounts of the Union and States as defined by Parliament through law. This allows the CAG’s role to evolve in response to changing administrative and financial systems while maintaining its independence. 
• The main legislation governing the CAG's functions is the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 (DPC Act). This Act outlines the CAG’s responsibilities, powers, and procedures for auditing government departments and public bodies. 

Core Duties and Responsibilities 

• Under Section 13 of the DPC Act, the CAG is tasked with auditing all expenditures from the Consolidated Fund of India and of each State, ensuring that public funds are used for lawful and intended purposes in line with legislative approval. The CAG also audits transactions from the Contingency Funds and Public Accounts of both the Centre and the States, reviewing financial operations for compliance and detecting irregularities or misuse of funds. 
• In addition, the CAG audits financial accounts such as profit and loss statements, trading accounts, manufacturing accounts, and balance sheets maintained by government departments. This ensures thorough oversight of all government financial activities. 
• Under Section 10, the CAG is responsible for compiling accounts of the Union and State governments, while Section 11 mandates that these accounts be submitted to the President, Governors, and UT Administrators. 

Powers and Authority 

• The CAG has extensive powers to perform its constitutional duties. These include access to all financial documents and records necessary for audit. In Arvind Gupta v. Union of India (2013), the Supreme Court affirmed the CAG's authority to examine whether public money is used economically, efficiently, and effectively. 
• The CAG also carries out performance audits, which go beyond checking compliance. These audits evaluate whether government schemes and programs are meeting their objectives and providing value for money to citizens. 
• Under Sections 14, 15, and 19 of the DPC Act, the CAG is authorized to audit government companies, corporations, and other public bodies, including those established under special legislation. The Delhi High Court in National Dairy Development Board v. CAG of India (2010) confirmed that such bodies are still subject to CAG audits. 

Scope and Jurisdiction 

• The CAG’s jurisdiction covers all levels of government—Union, State, and Union Territories with Legislatures.  
• The office also audits public sector enterprises and state-run commercial activities, ensuring consistency in audit standards and accountability across the government system. 
• The audit scope includes not only financial compliance but also operational performance. This helps identify systemic inefficiencies and areas for improvement in government functioning. 

Judicial Recognition and Constitutional Balance 

• Indian courts have upheld the CAG’s independence.  
• In Raghunath Kelkar v. Union of India (2009), the Bombay High Court recognized that the timing, scope, and method of audits are entirely under the CAG’s control.  
• In Arun Kumar Aggarwal v. Union of India (2013), the Supreme Court clarified that while CAG reports are independent, it is Parliament’s responsibility to decide the action to be taken based on the findings, maintaining a balance between audit autonomy and democratic accountability. 

Contemporary Relevance 

• As government operations grow in scale and complexity, the CAG’s role becomes even more critical.  
• Its emphasis on performance audits supports modern governance demands for efficiency, accountability, and results-based management.  
• CAG reports are key tools that help Parliament and State Legislatures oversee government finances and maintain democratic checks and balances. 

Conclusion

The CAG’s duties and powers form a foundational pillar of India's financial accountability system. Backed by constitutional status and detailed legislation, the office ensures that public resources are used lawfully and effectively. In a dynamic democracy like India, the CAG remains a crucial guardian of public trust, fiscal discipline, and transparent governance.