“The Comptroller and Auditor General (CAG) has a very vital role to play.” Explain how this is reflected in the method and terms of his appointment as well as the range of powers he can exercise. (UPSC 2018)

The CAG is the constitutional guardian of public finance, so his office is insulated from executive control.

Appointment and tenure

• Appointed by the President by warrant under hand and seal.
• Holds office for six years or up to 65 years, whichever is earlier.
• Can be removed only like a Supreme Court judge, on proved misbehaviour or incapacity, with parliamentary approval.
• Salary, service conditions and pension cannot be varied to his disadvantage; post-retirement, he is barred from Union or State office.

Powers

• Audits expenditure from the Consolidated Fund, Contingency Fund and Public Accounts of the Union and States.
• Audits government companies, PSUs and bodies substantially financed by government funds.
• Conducts compliance and propriety audit to test legality, economy, prudence and public interest.
• Prescribes accounting forms and submits reports to the President/Governors for legislative scrutiny.

Thus, constitutional safeguards and wide audit jurisdiction make the CAG vital to parliamentary control over public money.