Regulation 161 — Audit Regulations 2020
Original Rule Text
161. Provisions of the Constitution regarding accounts
(1) Under Article 149 of the Constitution, the Comptroller and Auditor General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament.
(2) By virtue of the provisions of Article 150 of the Constitution, the accounts of the Union and the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General, prescribe. The word “form” used in Article 150 has a comprehensive meaning so as to include the prescription not merely of the broad form in which the accounts are to be kept, but also the basis for selecting the appropriate heads under which the transactions are to be classified.
What This Means
This regulation elaborates on the constitutional provisions underlying the CAG's accounting role. Under Article 149, the CAG performs duties prescribed by Parliament through legislation. Under Article 150, the President prescribes the form of Union and State accounts on the CAG's advice. The word 'form' in Article 150 has been interpreted broadly — it covers not just the broad structure of accounts but also the detailed classification of transactions under appropriate heads of account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Article 149 empowers Parliament to define the CAG's duties and powers through law
- 2Article 150 gives the President power to prescribe account forms on the CAG's advice
- 3The word 'form' is interpreted comprehensively to include classification of transactions
- 4The CAG advises on both the broad structure and detailed heads of account
- 5This gives the CAG significant influence over how government financial transactions are recorded
Practical Example
When the Government of India decides to introduce a new classification for expenditure on climate change adaptation across all ministries, the CAG's office advises on how this should be incorporated into the existing chart of accounts. Under Article 150, the President prescribes the modified account form on the CAG's advice, ensuring that all states follow a uniform classification. This means that climate change expenditure can be tracked consistently across the Union and all state budgets.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the broad interpretation of 'form' important?▼
Can a state government adopt its own account classification different from the CAG's prescription?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.