Deprecated: wp_make_content_images_responsive is deprecated since version 5.5.0! Use wp_filter_content_tags() instead. in /var/www/wbxpcom/wp-includes/functions.php on line 4773
Q. Describe the overall process of control over the financial administration in a state.
Parliament controls the financial administration as under:
1. Legislative control
2. Administrative control
3. Audit control
What is Legislative control?
There are two parts of legislative control over finance as under:
(i) Policy making
(ii) Implementation of Policy
The Legislature has the control of the fund and determines how to increase the resources and how to spend the same on specified objects in each year. The same is reflected in the budget showing the estimated receipts and proposed expenditure of the administration for a Financial year i.e. policy making.
The second stage of finance is control over implementation of policies. The moneys voted by the Legislature have been utilised properly for which the same are approved by the Legislature.
What Is Administrative control?
It is the duty of the Administration to carry out the policies determined by the Legislature whether the collection of moneys and utilised them on specified objects for implementation of policies as laid down by the Legislature have been properly made by the administration or not. The administration should also ensure the formulation of similar accountability on the part of each authority subordinate to the one immediately above.
What Is Audit control?
The object and function of the Audit are given below
(1) Fiscal Accountability
(i) Fiscal integrity
(ii) Full disclosure
(iii) Observing of rules and regulations and laws
(2) Managerial accountability
(i) Efficiency and economy in the use of public moneys
(iii) Personnel and other resources.
(3) Programme Accountability
Activities of the Govt, are achieving the objective with due regard to both costs and results.
Audit is the main instrument to secure accountability of the lower formation in the set up to the administration and of the Administration to the Legislature in the area of financial administration. Audit is an indispensable part of financial system and one of the important organs necessary to ensure the sound functioning of Parliamentary democracy. The policies framed by the legislature are to be implemented by the Govt. The same will be examined by the audit. Audit reports submitted to the Legislature by the C.A.G. through President/Governor as the case may be, are examined by Public Accounts Committee on behalf of the legislature.