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Which of the following is NOT a function of the CAG in India?
- a)Auditing all expenditure from the Consolidated Fund of India
- b)Auditing the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues
- c)Approving the expenditure from the public exchequer before it is committed
- d)Advising the President with regard to the prescription of the form in which the accounts of the Centre and States shall be kept
Correct answer is option 'C'. Can you explain this answer?
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Which of the following is NOT a function of the CAG in India?a)Auditin...
Unlike the CAG in the UK, the CAG in India audits the accounts after the expenditure is committed, i.e., ex-post facto. In the UK, no money can be drawn from the public exchequer without the approval of the CAG.
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Which of the following is NOT a function of the CAG in India?a)Auditin...
The correct answer is option 'C': Approving the expenditure from the public exchequer before it is committed. The Comptroller and Auditor General (CAG) is an independent constitutional authority in India responsible for ensuring transparency and accountability in the financial operations of the government. Let's understand the functions of the CAG in detail:
Auditing all expenditure from the Consolidated Fund of India:
The CAG audits all expenditures made from the Consolidated Fund of India. The Consolidated Fund of India is the main account of the government where all revenues, loans raised, and money received by the government are credited, and from which all government expenditure is made. The CAG ensures that the funds from the Consolidated Fund are spent in accordance with the approved budget and in compliance with financial rules and regulations.
Auditing the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues:
The CAG also audits the financial transactions of bodies and authorities that receive substantial financial support from the Central or State governments. This includes government departments, public sector undertakings, autonomous bodies, and other entities that receive funding from the government. The CAG examines their receipts, expenditures, and financial statements to ensure proper utilization of public funds.
Advising the President with regard to the prescription of the form in which the accounts of the Centre and States shall be kept:
The CAG advises the President on matters related to the accounting procedures and methods to be followed by the Centre and States. This includes prescribing the format and standards for maintaining accounts, financial reporting, and auditing practices. The aim is to ensure uniformity and transparency in the accounting practices of the government.
Now, let's understand why option 'C' is not a function of the CAG:
Approving the expenditure from the public exchequer before it is committed:
The CAG does not have the authority to approve or disapprove expenditure from the public exchequer before it is committed. The responsibility for approving expenditures lies with the executive branch of the government. The role of the CAG is to audit and review the expenditure after it has been incurred to ensure its legality, regularity, and propriety.
In conclusion, while the CAG plays a crucial role in auditing government finances and ensuring accountability, it does not have the power to approve or disapprove expenditure before it is committed.
Auditing all expenditure from the Consolidated Fund of India:
The CAG audits all expenditures made from the Consolidated Fund of India. The Consolidated Fund of India is the main account of the government where all revenues, loans raised, and money received by the government are credited, and from which all government expenditure is made. The CAG ensures that the funds from the Consolidated Fund are spent in accordance with the approved budget and in compliance with financial rules and regulations.
Auditing the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues:
The CAG also audits the financial transactions of bodies and authorities that receive substantial financial support from the Central or State governments. This includes government departments, public sector undertakings, autonomous bodies, and other entities that receive funding from the government. The CAG examines their receipts, expenditures, and financial statements to ensure proper utilization of public funds.
Advising the President with regard to the prescription of the form in which the accounts of the Centre and States shall be kept:
The CAG advises the President on matters related to the accounting procedures and methods to be followed by the Centre and States. This includes prescribing the format and standards for maintaining accounts, financial reporting, and auditing practices. The aim is to ensure uniformity and transparency in the accounting practices of the government.
Now, let's understand why option 'C' is not a function of the CAG:
Approving the expenditure from the public exchequer before it is committed:
The CAG does not have the authority to approve or disapprove expenditure from the public exchequer before it is committed. The responsibility for approving expenditures lies with the executive branch of the government. The role of the CAG is to audit and review the expenditure after it has been incurred to ensure its legality, regularity, and propriety.
In conclusion, while the CAG plays a crucial role in auditing government finances and ensuring accountability, it does not have the power to approve or disapprove expenditure before it is committed.
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Which of the following is NOT a function of the CAG in India?a)Auditing all expenditure from the Consolidated Fund of Indiab)Auditing the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenuesc)Approving the expenditure from the public exchequer before it is committedd)Advising the President with regard to the prescription of the form in which the accounts of the Centre and States shall be keptCorrect answer is option 'C'. Can you explain this answer?
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