CAG: important concept-based questions for UPSC.
Q. 1. CAG of India is entrusted with constitutional obligations to carry out audits. Which of the following is not audited by CAG?
(A) PSB (Public Sector Banks)
(B) PSE (Public Sector Enterprises)
(C) An institution significantly funded by GoI or State Govt.
(D) Railways & Posts
Ans. (A ) PSBs are audited by RBI.
Q.2. Who said that “CAG is the most important functionary in the constitution”?
(A) J L Nehru
(B) Motilal Nehru
(C) Mahatma Gandhi
(D) Dr. B R Ambedkar
Ans. (D). The executive is answerable to the Parliament and the people. Parliament votes funds to the Executive. So, it must be accountable to public money i.e. avoiding its wastage, pilferage, etc. This is achieved through CAG. Hence, Dr. Ambedkar termed it as the most important functionary of the constitution.
Q.3. The Audit reports by CAG are sent to the:
(B ) Governor of the State
(C) Both (A) & (B)
(D) None of the above.
Ans. (C). The CAG sends the audit reports to President & Governors of the State so that they are laid in Parliament & State Legislatures.
Q.4. Among the following the Finance Ministry carries out the audit of:
(A) Supreme Court
(D) Both (A) & (B)
Ans. (D) FinMin carries out the audit of SC & Parliament.
Q. 5. CAG audits the expenditure from:
(A) Consolidated Fund of India
(B) Contingency Fund of India
(C) Both (A) & (B)
(D) None of the above
Ans. (C) Both (A) & (B).
Other things to be noted:
1. CAG is the Head of the IAAD (Indian Audits & Accounts Department).
2. CAG of India is the guardian of the Public Purse.
3. He holds office for a period of 6 years or upto the age of 65 years, which is earlier.
4. CAG is a misnomer. Comptroller & Auditor General of India only performs the role of Audior-General by auditing the accounts when the expenditure has already taken place unlike CAG of Britain without whose approval the executive cannot draw money from exchequer.
5. Art. 148- 151 in Indian Constitution are related to CAG.
With Great Love,
Er. Amit Yadav