🔍 CAG — Comptroller and Auditor General

• Established under Article 148 of the Constitution
• Appointed by the President of India
• Tenure: 6 years or 65 years of age, whichever is earlier
• Removal: same procedure as a Supreme Court judge — address by both Houses of Parliament on grounds of proved misbehaviour or incapacity
• After retirement, the CAG is not eligible for further office under the Government of India or any State Government
• Salary charged to the Consolidated Fund of India (not subject to vote of Parliament)
• Called the “Guardian of the Public Purse” and “Friend, Philosopher and Guide” of the Public Accounts Committee

📋 Functions of CAG

• Audits accounts of the Union Government and all State Governments
• Audits accounts of all bodies and authorities substantially financed from Central/State revenues
• Audits accounts of government companies (under Companies Act)
• Audits receipts and expenditure of bodies receiving grants from the Consolidated Fund
• Submits Audit Reports to the President (for Union) and to the Governor (for States)
• These reports are then laid before Parliament/State Legislature
• CAG reports are examined by the Public Accounts Committee (PAC) of Parliament
• PAC is chaired by a member of the Opposition party (convention since 1967)
• CAG is also the head of the Indian Audit and Accounts Service (IAAS)

💰 Finance Commission

• Established under Article 280 of the Constitution
• Constituted by the President every 5 years (or earlier if necessary)
• Composition: Chairman + 4 members — all appointed by the President
• Qualifications: Chairman should be a person with experience in public affairs; members should have knowledge of finance, economics, administration, or law
• Tenure: as specified by the President in the order constituting the Commission
• Members are eligible for reappointment

📋 Functions of Finance Commission

• Recommends distribution of net proceeds of taxes between Centre and States (vertical devolution)
• Recommends allocation of States’ share among States (horizontal devolution)
• Recommends grants-in-aid to States from the Consolidated Fund of India
• Recommends measures to augment the Consolidated Fund of a State to supplement resources of Panchayats and Municipalities
• Any other matter referred to it by the President in the interest of sound finance

📅 Finance Commissions — Quick Reference

✅ Revision Checklist