Introduction
Article 149 of the Indian Constitution clearly defines the duties and powers of the Comptroller and Auditor-General of India. It states that the CAG performs all tasks related to the accounts of the Union, the States and other public authorities as prescribed by laws made by Parliament. Parliament holds the authority to expand or modify these duties as needed. Until Parliament passes specific laws, the CAG continues to discharge the responsibilities that the former Auditor-General of India performed for the Dominion and provincial governments. This ensures continuity in financial oversight and accountability.
How Does the Legal Framework Strengthen Article 149?
The main legal support for Article 149 comes from the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971. This Act gives practical shape to Article 149. It details how the CAG audits government receipts and expenditures. It also lays down rules for auditing government-owned bodies, autonomous institutions and other authorities that use public funds.
The Act ensures the CAG functions independently while maintaining transparency in public finances. It empowers the CAG to investigate how money is raised and spent. It also allows Parliament to revise or expand the CAG’s mandate as governance needs evolve over time. Because of this flexible legal structure, the CAG’s role remains relevant even as financial systems grow more complex.
What Core Duties Does the CAG Perform Under Article 149?
The CAG audits all money flowing into and out of the Consolidated Fund of India and the Consolidated Funds of the States. The CAG verifies that no expenditure takes place without proper legal authorization. This check protects public money from misuse. The CAG also audits the Contingency Funds and Public Accounts of both the Union and States. These functions make the office one of India’s most important financial watchdogs.
The CAG conducts three primary types of audits. The first is compliance audit. It examines whether government actions follow laws, rules and procedures. The second is financial audit. It verifies whether financial statements accurately reflect government accounts. The third is performance audit. It evaluates whether public spending achieves expected results in an economical, efficient and effective manner. These audits reveal wastage, weak planning and gaps in implementation. They also highlight best practices that help improve governance.
Once audit reports are completed, the CAG submits them to the President or the Governor. These authorities then place the reports before Parliament or the State Legislature. The reports undergo examination through committees such as the Public Accounts Committee. This process strengthens democratic oversight and keeps the executive accountable for all financial decisions.
How Does the CAG Ensure Accuracy in Government Accounts?
Article 150 allows the CAG to prescribe the format of government accounts in consultation with the President. This authority ensures uniformity and transparency in accounting systems. The CAG sets standards for maintaining records. The office also updates accounting formats to match modern financial practices.
The CAG has unrestricted access to the records of ministries, departments, public sector undertakings, autonomous bodies and institutions that receive government grants. This access is crucial for conducting thorough and unbiased audits. It also helps the CAG verify whether public money is used for approved purposes.
Why Is the CAG Important for India’s Financial Accountability?
The CAG safeguards the financial integrity of the nation. Every rupee collected through taxes or spent on public programs comes under the CAG’s scrutiny. This oversight prevents leakages, irregularities and corruption. It also ensures that development programs reach the intended beneficiaries. The CAG’s findings often lead to policy reforms, stricter financial controls and better delivery of public services.
The CAG’s independence strengthens its credibility. It is free from executive control in performing audits. This independence is protected by constitutional provisions related to appointment, tenure and removal. Because of this, the CAG can report facts without fear or influence. Such autonomy is essential for maintaining trust in public institutions.
How Does the CAG’s Role Evolve With Government Needs?
Article 149 allows Parliament to expand the CAG’s functions. This flexibility keeps the institution relevant as new public authorities and financial mechanisms develop. Over time, Parliament has assigned additional audit responsibilities through specific laws. These include audits of government companies, autonomous institutions and bodies funded through public resources.
The increasing use of public-private partnerships, digital payments and complex financial instruments has expanded the CAG’s scope. The office now examines whether public-private projects protect public interest. It also evaluates whether digital systems ensure transparency and accuracy in transactions. This evolution highlights how Article 149 adapts to changing governance standards.
How Does the CAG Audit Public Sector Undertakings?
The CAG audits government-owned companies by reviewing their accounts and assessing whether these enterprises follow sound financial practices. The CAG also conducts supplementary audits for public sector undertakings. These audits reveal issues in pricing, procurement, project management and financial planning. The CAG’s observations often lead to structural improvements in the functioning of these enterprises.
How Does the CAG Support Good Governance?
Good governance depends on transparency, accountability and efficient use of resources. The CAG contributes to each of these pillars. The office exposes irregularities and highlights areas where public money is misused or wasted. It also provides recommendations to improve planning, strengthen financial controls and enhance the effectiveness of government schemes.
Ministries and departments use CAG reports to correct procedural lapses. Legislatures rely on them to monitor executive performance. Civil society refers to them to understand how public funds impact development. Because of this wide influence, the CAG plays a central role in building trust between citizens and the government.
How Does Article 149 Maintain Continuity in Public Financial Oversight?
Before India adopted its Constitution, the Auditor-General of India handled Dominion and provincial accounts. Article 149 ensures continuity by allowing the CAG to perform the same duties until Parliament creates new laws. When Parliament enacted the CAG Act of 1971, it retained many foundational principles of financial oversight while strengthening the institution’s independence. This continuity provides stability in the nation’s financial system.
How Do CAG Reports Influence Policy and Reforms?
CAG reports often trigger inquiries and reforms. When the CAG identifies irregularities in spending, legislative committees seek explanations from ministries. These hearings push departments to correct their procedures. Some audits lead to amendments in rules or revision of schemes. In several cases, CAG findings have exposed major financial scams, prompting legal action and systemic reforms.
Performance audits also influence policy. They highlight whether programs achieve expected outcomes. Policymakers use these insights to redesign schemes for better results. Because of this, the CAG is not just an auditor but a catalyst for administrative improvement.
Why Does Article 149 Matter for Every Citizen?
Public money belongs to the people. Article 149 ensures that the CAG protects this money by checking how the government collects and spends it. The CAG’s work helps ensure that development funds reach roads, schools, hospitals and welfare schemes. It also discourages arbitrary decisions and strengthens trust in public institutions. When the CAG functions effectively, citizens benefit from better governance and more efficient public services.
Conclusion
Article 149 establishes a powerful constitutional framework that defines the duties and powers of the Comptroller and Auditor-General of India. Together with the CAG Act of 1971, it ensures strong financial oversight across the Union, States and public authorities. The CAG’s audits improve transparency, accountability and efficiency in public spending. As governance evolves, the CAG’s role continues to expand, making it one of the most important institutions for safeguarding public funds and strengthening democracy in India.
