Why in the News?
The Comptroller and Auditor General of India approved two new Indian Audit and Accounts Department (IA&AD) cadres, the Central Revenue Audit and Central Expenditure Audit, effective from 1 January 2026.
About the New Cadres:
- Objective: Designed to build deeper professional expertise in auditing Central receipts and expenditures, streamline manpower management, and reduce dependence on regional deployments.
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- Central Revenue Audit (CRA): Focuses on auditing Central Government revenues, including direct taxes, indirect taxes, customs, excise, and non-tax receipts. It ensures compliance, accuracy, and transparency in revenue administration.
- Central Expenditure Audit (CEA): Concentrates on auditing Central Government expenditures, assessing legality, efficiency, and prudence in public spending across ministries and departments.
- Impact: The reform consolidates around 4,000 audit professionals (out of a total CAG strength of ~42,000), improving manpower flexibility, domain expertise, and data-driven audit capabilities.
- Significance: Marks a major shift toward centralised auditing, ensuring a uniform approach to the examination of national finances and reinforcing accountability in public administration.
About the Comptroller and Auditor General (CAG) of India:
- Overview: Established under Article 148, the CAG heads the Indian Audit and Accounts Department (IA&AD) and acts as guardian of public finance.
- Legal Framework: Functions under the CAG (Duties, Powers and Conditions of Service) Act, 1971, amended in 1976, 1984, and 1987.
- Appointment & Tenure:
- Appointed by the President under warrant and seal.
- Tenure – Six years or until age 65, whichever earlier.
- Removal – Same as a Supreme Court judge, requiring special majority in Parliament.
- Independence Safeguards:
- Salary and expenses charged on the Consolidated Fund of India.
- No reappointment to government posts after retirement.
- No minister can defend the CAG in Parliament.
- Duties & Powers:
- Audits Consolidated Funds of the Union, States, and UTs.
- Examines PSUs, autonomous bodies, and grant-in-aid institutions.
- Submits reports to the President, later examined by the Public Accounts Committee (PAC).
- Role & Importance: Serves as the watchdog of public finance, conducting regulatory and propriety audits to ensure legality and efficiency in expenditure.
- International Role: Currently the External Auditor for IAEA (2022–2027) and FAO (2020–2025), enhancing India’s global audit leadership.
| [UPSC 2012] In India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)?
1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency 2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee. 3. Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances. 4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law. Which of the statements given above is/are correct? (a) 1, 3 and 4 only (b) 2 only (c) 2 and 3 only * (d) 1, 2, 3 and 4 |
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