UPSC Prelims 2001 · General Studies

Question 86: Polity and Governance

Which one of the following duties is NOT performed by the Comptroller and Auditor General of India?

aTo audit and report on all expenditure from the Consolidated Fund of India

bTo audit and report on all expenditure from the Contingency Funds and Public Accounts

cTo audit and report on all trading, manufacturing, profit and loss accounts

dTo control the receipt and issue of public money, and to ensure that the public revenue is lodged in the exchequer

AnswerThe answer is (d).

The CAG does not control the receipt and issue of public money; that is the executive's job, handled by the Finance Ministry and the treasuries. In India the CAG only audits: expenditure from the Consolidated Fund, the Contingency Fund and the Public Account, and trading, manufacturing and profit and loss accounts of departments, and reports to Parliament. Remember the contrast with Britain, where the Comptroller authorises issue of funds.

Why each option is right or wrong

(a) The CAG audits all expenditure from the Consolidated Fund.
(b) The CAG audits the Contingency Fund and Public Account expenditure.
(c) The CAG audits trading, manufacturing and profit and loss accounts.
(d) Right: the CAG does not control the receipt and issue of public money.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2001, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.