The Comptroller and Auditor General of India (CAG) is a constitutional body and the supreme audit institution of India, established under Article 148 of the Constitution of India, 1950. The office's origin traces back to the Accountant General to the Government of India in 1858, which was later designated the Auditor General of India in 1860. The problem it solved was ensuring the financial accountability of the executive to the legislature, a role Dr. B.R. Ambedkar called one of the four bulwarks of the democratic system.
The CAG's duties and powers are primarily laid out in Articles 149 to 151 of the Constitution and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971. The CAG is appointed by the President and can only be removed in the same manner and on the same grounds as a Judge of the Supreme Court, ensuring independence. The CAG's core mechanism is to audit all expenditure from the Consolidated Fund of India, of each State, and of each Union Territory having a Legislative Assembly, as mandated by Section 13 of the 1971 Act. This audit includes checking for legality, regularity, and propriety, which involves assessing the "wisdom, faithfulness and economy" of government spending.
The CAG's reports on the Union's accounts are submitted to the President under Article 151, who then causes them to be laid before each House of Parliament. This mechanism connects the CAG directly to the Public Accounts Committee (PAC) of Parliament, where the CAG acts as a "friend, philosopher, and guide" to scrutinize the executive's financial performance. A significant change occurred in 1976 when the CAG was relieved of the responsibility for compiling and maintaining the accounts of the Union Government, separating the accounting function from the audit function. However, the CAG continues to compile and maintain the accounts of state governments. The CAG's salary is equal to that of a Supreme Court judge, and the term of office is six years or until the age of 65, whichever is earlier.