CAG’s Plan for Two New Cadres

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.
• 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.

• 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.

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.
• 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.

• 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).

• 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.

• 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.