Question

Consider the following statements:

(a) The Indian Audit and Accounts Department functioning under the CAG.

(b) The parliament had enacted the CAG's (Duties, Powers and Conditions of Service) Act in 1969.

(c) The Accountant General, Maharashtra has to perform such duties and functions as are directed by CAG.

Which of the above statements are correct?

1. (a) and (c)
2. (a) and (b)
3. (b) and (c)
4. All of the above

Answer 1

Correct Answer - Option 1 : (a) and (c)

The correct answer is ​(a) and (c).

​

• About CAG:
  • The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG) in chapter V under Part V.
  • The CAG is mentioned in the Constitution of India under Article 148 -151.
  • He is the head of the Indian Audit and Accounts Department. Hence statement (a) is correct.
  • He is the guardian of the public purse and controls the entire financial system of the country at both levels at the center and at the state.
  • His duty is to uphold the Constitution of India and the laws of Parliament in the field of financial administration.
  • Appointment and Term to Constitutionals Posts: 
  • The CAG is appointed by the President of India by a warrant under his hand and seal.
  • He holds office for a period of six years or up to the age of 65 years, whichever is earlier.
• Duties and Powers:-
  • The Constitution (Article 149) authorizes the Parliament to prescribe the duties and powers of the CAG in relation to the accounts of the Union and of
  • the states and of any other authority or body.
  • Accordingly, the Parliament enacted the CAG’s (Duties, Powers and Conditions of Service) act, 1971. Hence statement (b) is not correct.
  • This Act was amended in 1976 to separate accounts from audits in the Central government.
  • The duties and functions of the CAG as laid down by the Parliament and the Constitution are:
    •  CAG audits the accounts related to all expenditures from the Consolidated Fund of India, Consolidated Fund of each state, and UT has a legislative assembly.
    • CAG audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
    • CAG audits all trading, manufacturing, profit and loss accounts, balance sheets, and other subsidiary accounts kept by any department of the Central Government and the state governments.
    • CAG audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies when so required by related laws.
    • He ascertains and certifies the net proceeds of any tax or duty and his certificate is final on the matter.
• ​​Under the special and general directions given by the Comptroller and Auditor General from time to time, the Accountants General, Maharashtra, and other officers and establishments of the Indian Audit and Accounts Department perform such duties and functions as are imposed on or undertaken by the Comptroller and Auditor General under the provisions of the Constitution, or of any law made by Parliament. Hence statement (c) is correct.