polity medium true/false

Accounts of Panchayats and Municipalities are audited by the Comptroller and Auditor General of India directly.

  1. True
  2. False

Answer: False

Article 243J: State Legislature may make provisions for maintenance/audit of Panchayat/Municipality accounts. CAG audits only if State law so provides. Most States have local fund audit departments. CAG's role is limited to grants/loans from Consolidated Fund. Ensures accountability while respecting State autonomy over local bodies.

Topic Local Government - Audit of Accounts
Exam Relevance Financial accountability question for UPSC Prelims and SSC CGL

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