Article 148

Article 148 of the Constitution of India establishes the office of the Comptroller and Auditor-General (CAG) of India, who serves as the guardian of the public purse and ensures accountability in government spending. The CAG is a constitutional authority tasked with auditing all expenditures and receipts of the Union and State governments, thereby safeguarding the principles of financial transparency and parliamentary control over public finances.

Constitutional Text and Structure

Article 148 provides for the appointment, conditions of service, and financial independence of the CAG. It forms part of Chapter V of Part V of the Constitution, dealing with “The Union” and ensures that the audit machinery remains autonomous from executive influence.
The Article reads in summary:

1. There shall be a Comptroller and Auditor-General of India, appointed by the President through a warrant under his hand and seal.
2. Before entering office, the CAG shall make and subscribe an oath or affirmation as set out in the Third Schedule to the Constitution.
3. The conditions of service and tenure of the CAG shall be determined by Parliament by law, or until such provision is made, by the President.
4. The CAG shall not be eligible for any further office under the Government of India or any State Government after retirement or resignation.
5. The administrative expenses, including salaries, allowances, and pensions of the CAG and staff, shall be charged upon the Consolidated Fund of India.
6. The conditions of service for persons employed in the Indian Audit and Accounts Department are prescribed by the President after consultation with the CAG.

Appointment and Tenure

• The CAG is appointed by the President of India through a formal warrant under his hand and seal, symbolising the constitutional sanctity and independence of the office.
• The removal procedure of the CAG is identical to that of a Judge of the Supreme Court, meaning the CAG can be removed only on grounds of proved misbehaviour or incapacity through a special majority resolution in Parliament.
• This procedure ensures security of tenure and protects the CAG from executive interference, enabling impartial functioning.

Oath or Affirmation

Before assuming office, the CAG must take an oath or affirmation as prescribed in the Third Schedule of the Constitution. The oath affirms:

• Faithful performance of duties,
• Allegiance to the Constitution, and
• Maintenance of the sovereignty, integrity, and independence of the institution.

This constitutional formality underlines the ethical and constitutional commitment of the CAG to impartiality and integrity.

Salary and Conditions of Service

• The salary and other conditions of service of the CAG are determined by Parliament through legislation.
• Until Parliament enacts such a law, these are governed by the Second Schedule of the Constitution.
• Once appointed, the CAG’s salary, pension, leave entitlements, and retirement age cannot be altered to their disadvantage, ensuring independence from executive control.

At present, the salary of the CAG is equivalent to that of a Supreme Court Judge, reinforcing the parity of constitutional status between the two offices.

Post-Tenure Ineligibility

After demitting office, the CAG is not eligible for further appointment under either the Union or any State Government.

• This restriction prevents post-retirement inducements and ensures absolute neutrality and non-partisanship while in office.

Administrative Control over the Audit and Accounts Department

• The Indian Audit and Accounts Department (IA&AD) functions under the supervision of the CAG.
• The President, after consulting the CAG, prescribes the service conditions of officers and employees of this department.
• This consultation process preserves the functional autonomy of the CAG while maintaining administrative coordination with the executive.

Financial Independence

Article 148(6) provides that all administrative expenses of the CAG’s office — including salaries, allowances, and pensions of staff — are charged upon the Consolidated Fund of India.
This means that such expenses:

• Do not require annual parliamentary approval through appropriation acts; and
• Cannot be reduced or withheld by the executive.

This financial safeguard ensures that the CAG operates independently, free from budgetary or political pressures.

Historical Context

The office of the CAG has its origins in British India. The Government of India Act, 1935, first institutionalised the CAG as an independent auditor for public accounts. After independence, the Constitution of India retained and strengthened this institution to ensure transparency and accountability in public finance.
The first Comptroller and Auditor-General of India was V. Narahari Rao, appointed in 1949.

Functions and Constitutional Role

While Article 148 establishes the office, the powers and duties of the CAG are elaborated in subsequent Articles and statutes:

• Article 149: Defines the duties and powers of the CAG.
• Article 150: Relates to the form of Union and State accounts.
• Article 151: Provides for the submission of audit reports to the President or Governors, who lay them before Parliament or State Legislatures.
• The Comptroller and Auditor-General’s (Duties, Powers, and Conditions of Service) Act, 1971: Expands the scope of CAG’s audit jurisdiction, including government companies, autonomous bodies, and public corporations.

Together, these provisions create a comprehensive audit framework for the Union and State governments.

Important Supreme Court Judgments

The judiciary has reinforced the constitutional independence and accountability of the CAG through several landmark rulings:

• K. S. Venkataraman v. Union of India (1954):The Court affirmed that the CAG is a constitutional authority independent of the executive, entrusted with the vital function of auditing public expenditure.
• State of Uttar Pradesh v. Rajendra Singh (2009):The Supreme Court clarified that the CAG’s audit jurisdiction extends to the examination of financial transactions and the use of public funds by State authorities.
• Comptroller and Auditor General of India v. Union of India (2018):The Court reaffirmed the CAG’s power to audit non-governmental entities that receive substantial public funds, emphasising the principle of accountability in governance.

These judgments collectively highlight that the CAG’s constitutional role extends beyond mere accounting to ensuring financial integrity and transparency in public administration.

Significance of the Comptroller and Auditor-General

1. Guardian of Public Finance:The CAG serves as the watchdog of the financial system, ensuring that public money is spent legally, efficiently, and for the intended purposes.
2. Instrument of Accountability:The office upholds parliamentary supremacy by providing legislators with independent assessments of government expenditure and performance.
3. Ensures Transparency:Through audit reports, the CAG exposes financial irregularities, inefficiencies, and misuse of public funds.
4. Preserves Financial Discipline:By conducting audits and scrutinising accounts, the CAG enforces accountability at every level of government functioning.
5. Supports Parliamentary Oversight:Reports of the CAG are examined by the Public Accounts Committee (PAC) of Parliament, ensuring follow-up action on audit findings.
6. Strengthens Democracy:An independent audit system enhances citizens’ trust in governance by upholding the principles of accountability, transparency, and rule of law.

Related Constitutional Provisions

• Article 149: Defines the duties and powers of the CAG.
• Article 150: Deals with the form in which the accounts of the Union and States are kept.
• Article 151: Provides for the submission and presentation of audit reports to the President and Governors.
• Article 279: Concerns the calculation of net proceeds of taxes, where the CAG’s certification is final.

Together, these provisions establish a robust framework for the financial accountability of the executive.

Additional Facts

• The CAG audits the accounts of:
  • The Union and State Governments,
  • Public sector undertakings,
  • Autonomous bodies substantially financed by government funds, and
  • Authorities managing public revenues or expenditures.
• The audit findings are submitted to the President or the Governor, who must lay them before Parliament or the State Legislature.
• The CAG’s audit reports often form the basis for policy reforms and parliamentary investigations into public finance management.

Constitutional Significance

Article 148 enshrines the CAG as a pillar of India’s financial democracy. It institutionalises an independent constitutional authority entrusted with ensuring fiscal accountability and integrity in governance.
By providing the CAG with security of tenure, financial autonomy, and administrative independence, the framers of the Constitution created a robust mechanism to prevent misuse of public funds and to uphold the sovereign accountability of the government to Parliament.