The role of CAG in the auditing of public corporations is limited. Some corporations are totally subjected to private audit.
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Comptroller & Auditor General of India (CAG):
Why in news?
- Former lieutenant governor of Jammu and Kashmir G C Murmu will be the next Comptroller & Auditor General of India.
- CAG is an authority, established by Article 148 of the Constitution of India.
- The CAG which audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.
- CAG is appointed by the President with tenure of 6 years or 65 years of age, whichever is earlier.
Article 148 – Comptroller and Auditor-General of India:
- There shall be a Comptroller and Auditor-General of India who shall be appointed by the President and shall only be removed in like manner and on like grounds as a Judge of the Supreme Court.
- The CAG shall make an oath before the President or some person appointed in that behalf by him, according to the form set out for the purpose in the Third Schedule.
- The salary and other conditions of service of the CAG shall be such as may be determined by Parliament by law and shall be charged upon the Consolidated Fund of India.
- The CAG shall not be eligible for further office either under the Government of India or under the Government of any State after he has ceased to hold his office.
- The conditions of service of persons serving in the Indian Audit and Accounts Department and the administrative powers of the Comptroller and Auditor-General shall be made by the President after consultation with the Comptroller and Auditor-General.
Article 149 – Duties and Powers of the Comptroller and Auditor-General:
- The Comptroller and Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament.
Article 150 – Form of Accounts of the Union and of the States:
- The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor-General of India, prescribe.
Article 151 – Audit Reports:
- The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.
- The reports of the Comptroller and Auditor-General of India relating to the accounts of a State shall be submitted to the Governor of the State, who shall cause them to be laid before the Legislature of the State.
Article 279 – Calculation of “net proceeds”:
- In the foregoing provisions of “net proceeds” or of any part of any tax or duty, in or attributable to any area shall be ascertained and certified by the Comptroller and Auditor-General of India, whose certificate shall be final.
- “Net proceeds” means in relation to any tax or duty the proceeds thereof reduced by the cost of collection, and for the purposes of those provisions the net proceeds of any tax or duty.
- Provisions as to the Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram.
- The accounts of the District Council or, as the case may be, the Regional Council shall be kept in such form as the Comptroller and Auditor General of India may, with the approval of the President, prescribe.