GK Question

polity hard mcq

In performance audits, the CAG assesses whether government programs achieve intended outcomes. Which of the following is NOT a typical component of CAG performance audit methodology?

  1. Assessing economy: Whether resources acquired/used at lowest cost
  2. Assessing efficiency: Whether maximum output achieved with given resources
  3. Assessing political popularity: Whether programs are favored by ruling party
  4. Assessing effectiveness: Whether objectives achieved, intended outcomes realized

Answer: Assessing political popularity: Whether programs are favored by ruling party

CAG performance audit methodology: (a) Three Es of performance audit: (i) Economy: Assess whether resources acquired/used economically (minimizing cost), (ii) Efficiency: Assess whether maximum output achieved with given resources (productivity), (iii) Effectiveness: Assess whether objectives achieved, intended outcomes realized (impact), (b) NOT component: Assessing political popularity - CAG audits are independent, non-partisan; focus on program performance, not political considerations, (c) Methodology: (i) Criteria development: Define objectives, indicators for economy, efficiency, effectiveness, (ii) Data collection: Gather financial, operational, outcome data from implementing agencies, (iii) Analysis: Compare actual performance against criteria, identify gaps, causes, (iv) Recommendations: Suggest improvements in program design, implementation, monitoring, (d) Applications: (i) MGNREGA audit: CAG assesses whether employment guarantee achieved, wages paid timely, assets created, (ii) Health programs: Audit whether health outcomes improved, services reached target populations, (iii) Infrastructure projects: Audit whether projects completed on time, within budget, delivering intended benefits, (e) Illustrates accountability architecture: CAG performance audit provides independent, evidence-based assessment of program performance; PAC, media, citizens use findings to demand accountability, reforms.

Topic CAG - Performance Audit Methodology
Exam Relevance CAG performance audit methodology critical for UPSC Mains and Judiciary exams