CAPF AC 2025 Q29: Indian Polity – Constitutional & Statutory Bodies

CAPF AC 2025, Paper I (General Ability and Intelligence) · Indian Polity

Consider the following statements about the powers and duties of the Comptroller and Auditor General of India : 1. He audits and reports on all expenditures from the Consolidated Fund of India. 2. He controls the issue and receipt of money from the Consolidated Fund of India. 3. He audits and reports on the expenditure of all bodies substantially financed from the Union or State revenues. Which of the statements given above are correct?

(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3

Answer: (c) 1 and 3 only

Explanation

Powers and duties of the CAG

How to think: in India the CAG is mainly an auditor, not a controller of payments.

The 'comptroller' role of controlling the issue of money from the Consolidated Fund belongs to the British model; in India it does not work that way.

Statement	Fact	Verdict
1. Audits all expenditure from the Consolidated Fund of India	Article 149 and the CAG (DPC) Act: audits all expenditure of the Union and States	Correct
2. Controls the issue of money from the Consolidated Fund	Payments are made without his sanction; he only audits after the money is spent	Wrong
3. Audits bodies substantially financed from Union or State revenues	Yes, including government companies and authorities financed by grants and loans	Correct

Answer: (c) 1 and 3 only.

Why each option is right or wrong

(a) Incorrect. Statement 2 is wrong: the CAG has no control over the issue of money.
(b) Incorrect. Statement 2 is wrong, and statement 1 is right.
(c) CORRECT. The CAG audits expenditure and funded bodies, but does not control the issue of money.
(d) Incorrect. Statement 2 is wrong.

Key point

CAG (Art 148-151): audits Union and State accounts, Consolidated and Contingency Funds, Public Accounts, bodies substantially financed by government; reports to President/Governor; audit is after expenditure. 'Friend, philosopher and guide' of the Public Accounts Committee.

Remember

CAG audits after the spending; he does not control the issue of money.

Common mistakes

Thinking the CAG sanctions payments like the British Comptroller.
Forgetting that audit by the CAG takes place after expenditure.
Leaving out bodies substantially financed by the government.

Exam tip

Educated guess: the CAG sits outside the executive, so he cannot approve the spending that he audits. This takes out statement 2 and leaves (c).

Sources

Constitution of India, Articles 148 to 151
M. Laxmikanth, Indian Polity, chapter on the Comptroller and Auditor General of India (duties and powers)

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