CAG: Comptroller and Auditor General
What the topic is and why it matters for UPSC
The Comptroller and Auditor General of India (CAG) is the apex audit authority enshrined in the Constitution. It functions as the watchdog of public finances, scrutinising the collection and utilisation of every rupee spent by the Union and State governments, autonomous bodies, and government‑owned enterprises. For a civil servant, especially one who may later serve in the Finance, Revenue, or Administrative cadres, understanding the CAG’s role is indispensable: it safeguards fiscal discipline, ensures transparency, and provides the factual basis for parliamentary oversight. In the UPSC context, the CAG epitomises the constitutional checks‑and‑balances that keep the executive accountable—an essential theme in Polity, Governance, and Ethics.
Constitutional / legal foundation (in 1‑2 sentences)
The office of the CAG is created under Article 148 of the Constitution, with its powers, duties and independence further detailed in Article 151 and the CAG Act, 1971. These provisions guarantee a fixed tenure, protection from removal except by impeachment, and the authority to audit all receipts and expenditures of the Union and States.
Sub‑topics covered in this chapter
- Historical evolution – From the British‑era Audit Office to the post‑Independence CAG.
- Constitutional status & independence – Articles 148, 149, 151; tenure, removal, and safeguards.
- Statutory framework – CAG Act, 1971; audit rules; powers of summons and inspection.
- Types of audits
- Financial audit – of accounts of the Union, States, and autonomous bodies.
- Compliance audit – checking adherence to laws, regulations, and policies.
- Performance audit – evaluating economy, efficiency, and effectiveness of programmes.
- Scope of audit – Receipts & expenditures, government‑owned corporations, public sector undertakings (PSUs) with ≥ 51 % government share, subsidiaries, and the Lokpal.
- Audit process & reporting – Planning, field work, drafting of reports, submission to President/Governor, and laying before Parliament/Legislatures.
- Public Accounts Committee (PAC) & Committee on Public Undertakings (COPU) – Interaction with CAG reports, follow‑up mechanisms, and impact on policy.
- Significant CAG reports & their fallout – Case studies (e.g., 2G spectrum, Commonwealth Games, coal allocation, PM‑Kisan scheme).
- Limitations & reforms – Issues of timeliness, capacity, digital audit, and recent proposals for strengthening the institution.
- Comparative perspective – CAG vis‑à‑vis supreme audit institutions of other democracies (e.g., US GAO, UK NAO).
Exam relevance
| Exam Paper | Relevance | Typical Question Types |
|---|---|---|
| Pre‑lims (GS‑II) | Factual recall & conceptual clarity | • “The CAG of India is appointed under which article?” <br>• “Which of the following bodies does the CAG audit?” (Multiple‑choice) |
| Mains (GS‑II & GS‑III) | Analytical & evaluative answers | • Discuss the role of the CAG in strengthening parliamentary oversight. <br>• Evaluate the impact of a recent CAG report on a major public‑sector scheme. <br>• Suggest reforms to enhance the effectiveness of the CAG in the digital age. |
| Optional (Public Administration / Governance) | In‑depth discussion | • “Critically examine the independence of the CAG vis‑à‑vis the executive.” |
A solid grasp of the CAG’s constitutional mandate, audit spectrum, and its interaction with legislative committees not only fetches marks in factual sections but also equips aspirants to craft nuanced, policy‑oriented answers—an indispensable skill for both prelims and mains.
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