Question

By giving a relevant example, explain the roles of parliament and the CAG in relation to public expenditure.

a) Parliament oversees budget allocation
b) CAG ensures financial transparency
c) Both a and b
d) Neither a nor b

Answer 1

Parliament oversees budget allocation while the CAG ensures financial transparency in relation to public expenditure.

Step-by-step explanation:

Both a and b.

Parliament oversees budget allocation and the CAG (Comptroller and Auditor General) ensures financial transparency in relation to public expenditure.

For example, in India, Parliament plays a crucial role in overseeing budget allocation. It scrutinizes the government's proposed budget and approves the allocation of funds to different departments and programs. This ensures that public funds are allocated efficiently and in accordance with the priorities of the government and the needs of the people.

The CAG, on the other hand, audits and examines the accounts related to public expenditure. It ensures that the government's financial transactions are transparent, accountable, and in compliance with legal and regulatory norms. The CAG's reports help in identifying instances of financial irregularities and recommending corrective measures.