CAG Full Form

CAG Full Form: The full Form of the CAG is Comptroller and Auditor General. The Comptroller and Auditor General of India (CAG) is the top auditing authority in the country. The CAG office was created under Article 148 of the Indian Constitution. The CAG’s main job is to audit all the income and spending of the Central Government, State Governments, and other bodies that receive government funds.

CAG of India Overview

The CAG serves as the Lokpal’s statutory auditor. The Public Accounts Committees (PACs) and Committees on Public Undertakings (COPUs), which are special committees in the Indian Parliament and state legislatures, present the CAG’s reports to the Parliament and legislatures for discussion. Here is a quick overview of the CAG.

Attribute	Details
Incumbent	K. Sanjay Murthy, IAS
In Office Since	21 November 2024
Reports To	President of India
Residence	New Delhi, Delhi
Nominator	Prime Minister of India
Appointer	President of India
Term	6 years or up to 65 years of age
Constituting Instrument	Article 148 of the Constitution of India

Do Check: List of all Important Full Forms

Current Comptroller and Auditor General of India

Shri K. Sanjay Murthy was sworn in as the Comptroller and Auditor General of India on November 21st, 2024 by the President of India, and he assumed office on the same day. Before he was appointed CAG, Shri K. Sanjay Murthy was the Secretary of the Department of Higher Education | Government of India, a role he held from October 1, 2021, to November 20, 2024.

CAG Appointment

According to Article 148 of the Indian Constitution, the President of India appoints the Comptroller and Auditor General (CAG) of India.

CAG Constitutional Provisions

The Constitution of India provides specific rules about the appointment, duties, and powers of the Comptroller and Auditor General (CAG) through various Articles and Schedules:

• Article 148: This article talks about how the CAG is appointed, the oath they take, and their terms and conditions of service.
• Article 149: This article explains the duties and powers of the CAG — mainly related to auditing government accounts.
• Article 150: According to Article 150, the President will choose the format of government accounts after consulting the CAG.
• Article 151: Reports related to the Union Government’s accounts are sent by the CAG to the President, who then presents them in Parliament. Reports related to a State Government’s accounts are submitted to the Governor, who places them before the State Legislature.
• Article 279: The CAG is responsible for calculating the “net proceeds” (like taxes collected), and their certificate is final and cannot be challenged.
• Third Schedule – Section IV: This section contains the official oath or promise that the CAG and Supreme Court Judges must take before starting their work.
• Sixth Schedule: For District and Regional Councils in certain tribal areas:
  • Their accounts must be kept in a format approved by the CAG and the President.
  • The Governor then places these audit reports before the Council.

Also Check: AFCAT Full Form

CAG Responsibilities

According to the Constitution and the provisions of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, the CAG is responsible for conducting audits in various financial areas. These include:

• Examining income and expenditure related to the Consolidated Fund of India, as well as similar funds of States and Union Territories that have a legislative assembly.
• Auditing accounts related to trading, manufacturing, profit and loss, balance sheets, and other supplementary records maintained by any government department, including records of stores and stock held in such offices.
• Conducting audits of government-owned companies, in accordance with the rules of the Companies Act, 2013.
• Reviewing accounts of statutory corporations created under laws passed by Parliament, in line with the relevant legislation.
• Auditing bodies and authorities that receive significant funding from the Union or State Consolidated Funds. In certain cases, even if an institution is not largely funded by the government, it can be audited if the responsibility is assigned to the CAG.
• Checking the utilization of grants and loans provided by the government to various organizations for specific objectives.
• Performing assigned audits, such as those of Panchayati Raj Institutions and Urban Local Bodies, under the Technical Guidance and Support (TGS) framework.

Must Read: Airbnb Full Form

CAG Scope of Audits

In India, the Comptroller and Auditor General (CAG) is responsible for auditing government accounts. This includes both Central and State Government accounts. The CAG has the power to audit:

• All money spent from the Consolidated Fund of India or any state — whether the money is spent inside or outside the country.
• All income or revenue collected into the Consolidated Fund.
• All transactions related to the Public Account and Contingency Fund of the Union and state governments.
• Transactions related to loans, deposits, money transfers, trading, and manufacturing.
• Profit and loss accounts and balance sheets that are kept as per the orders of the President or state Governors.
• Income records and stock accounts of government departments.
• Accounts of government companies, according to the Companies Act.
• The CAG also does performance audits (checking how well something works) and compliance audits (checking if rules are followed) for different government departments.
• In a landmark ruling, the Indian Supreme Court permitted the CAG to conduct audits of private businesses with revenue-sharing arrangements with the government.

Must Read: BCG Full Form

CAG Salary and Conditions of Service

The salary and service conditions of the Comptroller and Auditor General (CAG) are decided by the Parliament of India under the CAG (Duties, Powers and Conditions of Service) Act, 1971.

• The Comptroller and Auditor General receives the same salary as a judge of the Supreme Court of India.
• After the CAG is appointed, his salary, retirement age, leave, or pension rules cannot be changed in a way that harms his interests.
• Once the CAG retires or leaves the post, he cannot take up any job under the Central or State Government.
• These rules are made to protect the CAG’s independence, so that he can work without pressure or influence.
• As of 1st January 2016, the monthly salary of the Comptroller and Auditor General of India is two lakh fifty thousand rupees, which is approximately three thousand US dollars.

CAG Removal from Office

The CAG can be removed only on the ground of proven misbehaviour or incapacity on an address by both Houses of Parliament. The CAG demits office on attaining the age of 65 years or completion of a term of six years (whichever is earlier) or by impeachment proceedings.

Prominent Audit Reports by the CAG of India

The Comptroller and Auditor General (CAG) is not just a bookkeeper or accountant. He is a constitutional authority who checks whether the government is using public money properly. The Supreme Court of India once said that the CAG is responsible for checking the economy, effectiveness, and fairness in how the government uses its resources. If the CAG doesn’t do it, then who else will?

2G Spectrum Allocation Case

In a big report, the CAG pointed out that the allocation of 2G spectrum in 2008 caused a huge loss to the country. The report said the government may have lost up to ₹1.76 lakh crore (about $21 billion) due to poor handling of license distribution.

Later, the CBI (Central Bureau of Investigation) also filed a case and estimated the loss at ₹31,000 crore. On 2nd February 2012, the Supreme Court called the spectrum allotment illegal and unfair, and cancelled 122 licenses given during the term of then telecom minister A. Raja. The court said Raja had favoured a few companies, giving away a valuable national asset for free.

In August 2012, the government set a much higher base price for future spectrum auctions, confirming the earlier loss. However, in December 2017, a special court acquitted all accused, saying there was no solid proof. The judge said that the scam was created by highlighting only a few selected facts and exaggerating the issue.

Must Read: BOP Full Form

Coal Block Allocation (Coal Scam)

In 2012, the CAG released a report about how coal mines were allocated. The report said the government could have used open bidding, but didn’t. Because of this, both government and private companies got coal blocks at a low cost.

The draft report estimated that these companies got an extra benefit of over ₹10 lakh crore, but the final report presented in Parliament said the actual loss to the government was around ₹1.85 lakh crore (about $22 billion).

Although the report did not directly accuse anyone of corruption, it raised serious questions. The issue caused major political protests. The CBI later started an investigation and filed cases against several companies for giving false information and not developing the coal blocks. Some investigators also believed bribes may have been paid.

FAQs on CAG Full Form

Who is India's fifteenth CAG?

Shri K. Sanjay Murthy became India's 15th Comptroller & Auditor General on November 21, 2024.

Who is the 16th CAG chairman?

The 16th Finance Commission Chairman is Dr. Arvind Panagariya.

What is the full form of CAG?

The full form of CAG is Comptroller & Auditor General.