CAG’s Plan for Two New Cadres
Kartavya Desk Staff
Source: TH
Context: The Comptroller and Auditor General (CAG) of India has approved the creation of two new specialised cadres — Central Revenue Audit (CRA) and Central Expenditure Audit (CEA) within its department to enhance centralisation and audit quality from 1st January 2026.
About CAG’s Plan for Two New Cadres:
• What it is? The CAG plans to restructure its Indian Audit and Accounts Department by creating two new cadres — the Central Revenue Audit (CRA) and Central Expenditure Audit (CEA) — for improved centralised auditing.
• The CAG plans to restructure its Indian Audit and Accounts Department by creating two new cadres — the Central Revenue Audit (CRA) and Central Expenditure Audit (CEA) — for improved centralised auditing.
• Names of the cadres:
• Central Revenue Audit (CRA) Cadre – will handle specialised audits of Central Government receipts and revenues. Central Expenditure Audit (CEA) Cadre – will focus on expenditure audits of ministries and departments.
• Central Revenue Audit (CRA) Cadre – will handle specialised audits of Central Government receipts and revenues.
• Central Expenditure Audit (CEA) Cadre – will focus on expenditure audits of ministries and departments.
• Aim: To develop domain expertise, improve audit quality, and ensure professional specialisation in government financial audits, leading to greater fiscal accountability and efficiency.
• Need for reform: Currently, audits are handled by multiple State Civil Audit offices with dispersed cadre control, causing fragmentation and inefficiency. The new system will consolidate over 4,000 audit professionals (out of 42,000 total staff) and enhance manpower flexibility through all-India transfer liability.
• Currently, audits are handled by multiple State Civil Audit offices with dispersed cadre control, causing fragmentation and inefficiency.
• The new system will consolidate over 4,000 audit professionals (out of 42,000 total staff) and enhance manpower flexibility through all-India transfer liability.
About the Comptroller and Auditor General (CAG) of India:
• What it is? The CAG is a constitutional authority (Articles 148–151) responsible for auditing the receipts and expenditures of the Union, States, and other government-funded bodies. It acts as the “Guardian of the Public Purse” and ensures financial accountability of the executive to the legislature.
• The CAG is a constitutional authority (Articles 148–151) responsible for auditing the receipts and expenditures of the Union, States, and other government-funded bodies.
• It acts as the “Guardian of the Public Purse” and ensures financial accountability of the executive to the legislature.
• Constitutional basis:
• Article 148: Establishes the CAG of India. Article 149: Defines CAG’s duties and powers. Article 150: Prescribes the form of government accounts. Article 151: Deals with audit report submission to the President/Governor.
• Article 148: Establishes the CAG of India.
• Article 149: Defines CAG’s duties and powers.
• Article 150: Prescribes the form of government accounts.
• Article 151: Deals with audit report submission to the President/Governor.
• Appointment and tenure:
• Appointed by the President of India under his hand and seal. Holds office for 6 years or up to age 65, whichever is earlier. Can be removed only through a special majority resolution of Parliament (same as a Supreme Court judge).
• Appointed by the President of India under his hand and seal.
• Holds office for 6 years or up to age 65, whichever is earlier.
• Can be removed only through a special majority resolution of Parliament (same as a Supreme Court judge).
• Key functions (under the 1971 Act):
• Audits all expenditure from the Consolidated Fund, Contingency Fund, and Public Account of India and States. Audits Central and State revenues to ensure proper assessment and collection. Audits government companies and corporations under respective statutes. Provides audit reports to the President/Governor, which are examined by the Public Accounts Committee. Acts as a guide, friend, and philosopher to legislative committees.
• Audits all expenditure from the Consolidated Fund, Contingency Fund, and Public Account of India and States.
• Audits Central and State revenues to ensure proper assessment and collection.
• Audits government companies and corporations under respective statutes.
• Provides audit reports to the President/Governor, which are examined by the Public Accounts Committee.
• Acts as a guide, friend, and philosopher to legislative committees.
• Reports submitted:
• Audit Report on Appropriation Accounts – checks expenditure vs sanction. Audit Report on Finance Accounts – annual receipts and disbursements. Audit Report on Public Undertakings – performance of government companies.
• Audit Report on Appropriation Accounts – checks expenditure vs sanction.
• Audit Report on Finance Accounts – annual receipts and disbursements.
• Audit Report on Public Undertakings – performance of government companies.