Financial Governance

Why it matters

• Ensures the optimal allocation of scarce public resources towards developmental priorities and welfare schemes.
• Strengthens legislative oversight over the executive branch regarding the authorization and expenditure of funds.
• Enhances public trust by establishing robust mechanisms for financial reporting and independent auditing.
• Mitigates systemic risks and prevents the misuse of public exchequer through stringent compliance and internal control systems.

How it is asked

Focus on the constitutional provisions related to the Consolidated Fund of India, the role of the Comptroller and Auditor General (CAG) in post-expenditure scrutiny, and the function of Parliamentary Committees like the Public Accounts Committee in maintaining financial accountability.