Daily Passage Test for CLAT - Aug 7 MCQs & solutions Free

The CGA, under the Department of Expenditure, Ministry of Finance, is the Principal Accounting Adviser to the Government of India. Hence statement I is correct. The CGA manages the government’s accounting system, prepares fiscal reports, and submits Union Finance and Appropriation Accounts to Parliament under Article 150. It also enhances transparency and efficiency in public fund management through integrated, IT-enabled financial systems and conducts internal audits to assess risk management, control mechanisms, and governance processes. Shri K. Sanjay Murthy was sworn in as the Comptroller and Auditor General of India on 21st November 2024 by the Hon'ble President of India. The current Controller General of Accounts (CGA) is Shri S.S. Dubey. He assumed the position on March 6, 2023.

The Fiscal Responsibility and Budget Management Act of 2003 aimed to limit India’s fiscal deficit to 3% of the GDP by 2021. This target was set to promote fiscal discipline and macroeconomic stability. The Act also mandated a reduction in the central government's debt to 40% of the GDP by 2024-25.

Deficit financing is the budgetary situation where expenditure is higher than revenue. It is a practice adopted for financing the excess expenditure with outside resources. The expenditure revenue gap is financed by either printing of currency or through borrowing. This is borrowing by the government from RBI to finance the budget.

The FRBM Act was revised following recommendations from the N.K. Singh Committee. This committee, officially known as the FRBM Review Committee, was constituted in 2016 to review the performance of the FRBM Act and suggest necessary changes. The committee's report, submitted in Januaiy 2017, proposed significant revisions to the act, including the introduction of an "escape clause" for deviations from fiscal deficit targets under specific circumstances, and the establishment of an autonomous Fiscal Council.

The FRBM Act was revised following recommendations from the N.K. Singh Committee. This committee, officially known as the FRBM Review Committee, was constituted in 2016 to review the performance of the FRBM Act and suggest necessary changes. The committee's report, submitted in Januaiy 2017, proposed significant revisions to the act, including the introduction of an "escape clause" for deviations from fiscal deficit targets under specific circumstances, and the establishment of an autonomous Fiscal Council.

On 1 February 2021, Finance Minister Nirmala Sitharaman presented the first paperless budget. This was done due to the ongoing COVID-19 pandemic in India. The Union Budget 2021 was presented in a digital format for the first time to promote the Government of India's (Gol) Digital India flagship programme.