How independent is CAG?

WHAT IS CAG's ROLE?

Its main role is to audit and check accounts relating to all Union & state govt departments and offices, including Railways, Posts and Telecoms. It also scrutinises the accounts of companies owned or financed by the government.

There are about 1,500 public commercial enterprises and about 400 non-commercial autonomous bodies and authorities owned or controlled by the Union or state governments. Besides, there are over 4,400 authorities and bodies substantially financed from Union or State revenues that come under CAG's purview.

HOW DOES THE CAG CONDUCT ITS BUSINESS?

The audit by CAG is classified into regularity audit and performance audit. Under regularity audit, which is also called compliance audit, financial statements are analyzed and it is ascertained whether all rules and regulations were followed.

In performance audit, the CAG checks whether various government programmes have achieved the desired objectives at lowest cost and yielded the intended benefits.

IS IT INDEPENDENT?

The CAG is an authority established by the constitution of India and is independent from govt's influence. It has been formed to keep a check on govt's revenues and expenditures.

The CAG is appointed by the President and can only be removed from office in like manner and on like grounds as a judge of the Supreme Court. The salary & other conditions of service are determined by Parliament and cannot be changed to his disadvantage post-appointment.

The administrative expenses of the office of CAG are charged upon the Consolidated Fund of India.

WHAT HAPPENS AFTER CAG SUBMITS REPORTS?

The CAG submits its reports to various committees of Parliament and state legislatures, such as the Public Accounts Committee and the Committee on Public Undertakings.

These committees then scrutinize the reports and decide whether all policies were followed and whether there was any wrongdoing on the part of any government body. The matter is then debated in Parliament and corrective action is taken.