Controller General of Accounts (CGA)

Why in news?

• The union government’s fiscal deficit has worked out to be ?5.26 lakh crore or 35% of budget estimates at the end of September, as per the data released by the Controller General of Accounts (CGA)

About Controller General of Accounts (CGA):

• The CGA is the Principal Accounting Adviser to the Government of India. The office is in the Department of Expenditure, Ministry of Finance
• The office of the CGA has the mandate to establish and maintain a technically sound management accounting system.
• It also prepares and submits the accounts of the Central Government.
• It is also in charge of the exchequer control and internal audits.

Duties and responsibilities:

• The Allocation of Business Rules 1961 gives the duties and responsibilities of the CGA, as mentioned below:
  • Lays down the general accounting principles of the Central and State governments and the form of accounts.
  • He reconciles the cash balance of GOI with the Reserve Bank of India in general, along with balancing the reserve deposits about civil ministers or departments in specific.
  • Coordinating and assisting in the introduction of management accounting systems in civil ministries and departments.
  • Cadre management of Group A (Indian Civil Accounts Service) and Group B officers of the Central Civil Accounts Offices.
  • Function of disbursing pension to the central civil pensioners, high court judges, ex-Presidents, ex-MPs and freedom fighters.

Difference between CAG and CGA

• CAG and CGA differ in their functions.
• While the Comptroller and Auditor General of India (CAG) audits the accounts and related activities of the 3 tiers of government, the Comptroller General of Accounts (CGA) acts as the principal accounting adviser to the GOI.
• The CAG is a constitutional body while the CGA is not.
• The CAG is an independent body while CGA works under the Department of Expenditure.
• The office of CGA does not have security of tenure as that of CAG.
• In the year 1976, auditing was differentiated from accounting in India. The maneuver was made in in terms of taking away the functions of the CAG in matters of the Centre and handing them over to the CGA, with the State accounts continuing to be compiled by the CAG.

PRACTICE QUESTION:

Which of the following statements are correct regarding ‘Controller General of Accounts’

1. CGA works under the Ministry of Finance

2. CGA can be removed by the President only on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority.

Select the correct answer using the code given below:

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Answer