Polity Notes


CAG is also known as Guardian of Public Purse in India CAG is a constitutional Post under Art 148-151.

CAG is supreme Audit Institution of India. The mission of CAG is to promote accountability, transparency and good governance through high quality auditing and accounting and provide independent assurance to Legislature, Executive and the public that public funds are being used efficiently and for the intended purpose. CAG strive for best practices in public sector auditing & accounting and recognised for independent, credible, balanced and timely reporting on public finance & governance.

CAG audit all receipts & expenditures of Govt of India, all state govts including bodies substantially finance by GOI. CAG also audit accounts of govt owned companies. The report of CAG is considered by Public Accounts Committee and CAG assists this committee in course of investigation. The Rank of CAG is equal to the rank of a judge of Supreme Court. CAG is head of Indian Audit & Accounts Departments having nearly 60000 employees. CAG submit its report to President. Its report is laid before Parliament & all state Legislatures for discussion.

Appointment: CAG is appointed by President. Oath of office is administered by President. CAG can submit his resignation to the President.

Tenure: Tenure of CAG is 6 years or up to the age of 65 yrs whichever is earlier. His tenure is fixed i,e he cannot be removed from his post before completion of his tenure. The only exception is Impeachment (better word is removal as Impeachment is a process for removal of President only) by Parliament on ground of proved misbehaviour or incapacity or both after an inquiry conducted by a judge of Supreme Court.

Eligibility: Generally senior IAS/central Govt officer having vast experience in field of Economics, taxation, auditing, accounting etc is appointed as CAG by the president.

1st CAG V. Narhari Rao
11TH CAG Vinod Rai – (2008-13)
12TH CAG Shashi Kant Sharma
13TH CAG Rajiv Mehrishi
Present 14th CAG Girish Chand Murmu
w.e.f. 8/8/20 (Earlier he was first L.G. of J&K)

Note (1): Most of the SCAMS in Man Mohan Singh govt (2004-2014) were exposed by 11th CAG Vinod Rai (2008-13) e,g 2G Scam, 3G Scam, 4G Scam, Fodder Scam, Coal Scam, Commonwealth Games Scam etc. Vinod Rai was also responsible for defeat of Man Mohan Singh Govt in 2014 due to exposure of these scams. Modi govt appointed him first chairman of Bank Board Bureau. Now he is Hon. Advisor to Railways and a member of Railway Kaya Kalp council.

Note (2): In 2G spectrum case

On 21 Dec. 2017, a special CBI court acquitted all the persons accused in the case due to lack of evidences. A. Raja (the then Telecom Minister), Ms. Kanimozhi Karunanidhi (youngest daughter of Ex. Tamil Nadu Chief Minister M. Karunanidhi) and others were acquitted.

On 19 March 2018 Enforcement Directorate & on 20 March 2018 CBI too challenged in Delhi High Court the acquittal of the accused in the case.