Part V - The Union • Article

Article 150 Simplified: Form of accounts of the Union and of the States

Article 150 states that the financial accounts of the Central Government (Union) and the State Governments must be maintained in a specific, standardized format. The President of India officially decides this format, but they must do so only on the advice of the Comptroller and Auditor-General (CAG).

Official Text

The accounts of the Union and of the States shall be kept in such form as the President may, [on the advice of] the Comptroller and Auditor-General of India, prescribe.]

Simple Meaning

Explain Like Ten

This is a rule that says all government departments must write down their spending in a matching, standard notebook. The President chooses this matching format after asking the head auditor (CAG) for the best design.

Student Mode

Vests the authority to prescribe the form of Union and State accounts in the President, subject to the mandatory advice of the Comptroller and Auditor-General (CAG) of India. The 42nd Amendment, 1976, substituted 'on the advice of' for 'after consultation with', making the CAG's advice binding on the President. This ensures account structure uniformity across the federation.

Example

When the government designs the ledger system or formats for tax collections and departmental expenditures, the President issues a notification prescribing these forms after receiving the CAG's recommendation, ensuring bookkeeping is uniform across the country.

Key Takeaway

The President, on the CAG's advice, ensures that all government accounts across India follow a uniform and standardized structure.

FAQs

Is the President bound by the CAG's advice under Article 150?

Yes, following the 42nd Amendment Act of 1976, the President must act 'on the advice of' the CAG rather than just consulting them, making the advice legally binding.

Why is account formatting uniform between the Union and the States?

Uniformity prevents financial chaos, allows for direct comparison, and enables the CAG to audit and compile the nation's accounts efficiently under a single accounting standards framework.

Quiz

Who has the final authority to prescribe the form of Union and State accounts under Article 150?

Answer: The President of India

Whose advice is mandatory for the President when prescribing the form of accounts under Article 150?

Answer: Comptroller and Auditor-General of India