Para 1.2 — Sections 10, 11, and 12 of the CAG Act, 1971 defin

1.2 The responsibilities of the Comptroller and Auditor General in so far as it relates to compilation of accounts of the Union, the States and the Union Territories with Legislatures are given in Sections 10, 11 and 12 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 which are reproduced below:-

(1) The Comptroller and Auditor General shall be responsible-

(a) for compiling the accounts of the Union and of each State from the initial and subsidiary accounts rendered to the audit and accounts offices under his control by treasuries, offices or departments responsible for the keeping of such accounts; and

(b) for keeping such accounts in relation to any of the matters specified in clause

(a) as may be necessary:

Provided that the President may, after consultation with the Comptroller and Auditor General, by order, relieve him from the responsibility for compiling-

(i) the said accounts of the Union (either at once or gradually by the issue of several orders); or

(ii) the accounts of any particular services or departments of the Union:

Provided further that the Governor of a State with the previous approval of the President and after consultation with Comptroller and Auditor General, by

order, relieve him from the responsibility for compiling-

(i) the said accounts of the State (either at once or gradually by the issue of several orders); or

(ii) the accounts of any particular services or departments of the State.

Provided also that the President may, after consultation with the Comptroller and Auditor General, by order relieve him from the responsibility for keeping the accounts of any particular class or character.

(2) Where under any arrangement, a person other than the Comptroller and Auditor General has, before the commencement of this Act, been responsible-

(i) for compiling the accounts of any particular service or department of the Union or of a state, or

(ii) for keeping the accounts of any particular class or character, Such arrangement shall, notwithstanding anything contained in sub-section (1) continue to be in force unless, after consultation with the Comptroller and Auditor General, it is revoked in the case referred to in clause

(i) by an order of the President or the Governor of the State, as the case may be, and in the case referred to

- Section 11

in clause

(ii) by an order of the President.

Note : Based on the orders issued by the President in 1976 and thereafter, the Comptroller and Auditor General was relieved from the responsibility of compiling and keeping the accounts of various Departments/Ministries of the Union Government and Union Territories except in respect of the accounts relating to

(a) Pensions

(b) the Indian Audit and Accounts Department and

(c) Union Territories without Legislatures of Chandigarh, Dadra and Nagar Haveli and Lakshadweep.

The Comptroller and Auditor General shall, from the accounts compiled by him or by the Government or any other person responsible in that behalf prepare in each accounts (including in the case of accounts compiled by him, appropriation accounts) showing under the respective heads the annual receipts and disbursements for the purpose of the Union, of each State and of each Union Territory having a Legislative Assembly and shall submit those accounts to the President or the Governor of a State or Administrator of the Union Territory having a Legislative Assembly, as the case may be on or before such dates as he may, with the concurrence of the Government concerned, determine.

Provided that the President may after consultation with the Comptroller and Auditor General, by order, relieve him from the responsibility for the preparation and submission of the accounts relating to annual receipts and disbursements for the purpose of the Union or of a Union Territory having a Legislative Assembly.

# Section 12

Provided further that the Governor of a State may, with the previous approval of the President and after consultation with the Comptroller and Auditor General, by order, relieve him from the responsibility for the preparation and submission of the accounts relating to annual receipts and disbursements for the purpose of the State.

Note: In exercise of the power conferred by the first Proviso to Section 11 of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, the President issued orders relieving the Comptroller and Auditor General from the responsibility of preparing the Finance Accounts of Union Government from 1977-78 onwards and of the Union Territory of Pondicherry from 1988-89 onwards.

The Comptroller and Auditor General, will, however, continue to be responsible for the submission of the Finance Accounts of the Union to the President for being laid before the Parliament.

The Comptroller and Auditor General shall, in so far as the accounts for the compilation or keeping of which he is responsible, enable him to do so, give to the Union Government, to the State Governments or to the Governments of Union Territories having Legislative Assemblies, as the case may be, such information as they may, from time to time, require and render such assistance in the preparation of annual financial statements as they may reasonably ask for.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Section 10: CAG compiles Union and State accounts from treasury and departmental records
• 2The President or Governor can relieve CAG of compiling specific department accounts after consultation
• 3CAG was relieved of Union Finance Accounts preparation from 1977-78 onwards but still submits them
• 4Section 11: CAG prepares annual appropriation accounts showing receipts and disbursements
• 5Section 12: CAG must provide information and assist governments in preparing financial statements

Practical Example

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Frequently Asked Questions

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