Formation of CAG

 

CAG stands for Comptroller and Auditor General. The office of the Comptroller and Auditor General (CAG) is established under the Constitution of India to audit the financial transactions of the Union and State Governments, and of any other authority or body as may be prescribed by law. The CAG is appointed by the President of India and serves for a term of six years or until the age of 65, whichever is earlier. The CAG is independent of the executive branch of government and reports directly to the President and the Parliament. The main function of the CAG is to ensure that public funds are spent legally and for the intended purposes.