Actual Article
Article 150: Form of accounts of the Union and of the States
The accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor-General of India, prescribe.
UPSC Notes for Article 150
Explanation:
- Form of Accounts:
- The President, on the advice of the Comptroller and Auditor-General (CAG) of India, prescribes the form in which the accounts of the Union and the States are to be kept.
- This ensures that there is uniformity and consistency in the accounting practices across the country.
Key Points:
- Uniform Accounting: Ensures that the financial accounts of both the Union and the States follow a standardized format, promoting clarity and transparency.
- Role of CAG: Highlights the advisory role of the CAG in determining the form of accounts, ensuring that best practices in accounting and auditing are followed.
Important Cases and Commissions Related to Article 150
Cases:
- V.K. Jain vs. Union of India (2013): Although primarily focused on the role of the CAG, the case highlighted the importance of uniform accounting practices prescribed under Article 150.
- Re: Presidential Reference (2012): The Supreme Court acknowledged the critical role of the CAG in advising on financial matters, including the form of accounts.
Commissions:
- Second Administrative Reforms Commission: Emphasized the importance of standardized accounting practices for effective governance and financial management.
- 14th Finance Commission: Recommended enhancements in the accounting systems of the Union and the States to improve financial reporting and accountability.
Previous Year Prelims Questions Related to Article 150
- (UPSC Prelims 2016) Who prescribes the form in which the accounts of the Union and the States shall be kept?
- A. The Finance Minister
- B. The Prime Minister
- C. The President on the advice of the Comptroller and Auditor-General
- D. The Parliament Correct Answer: C. The President on the advice of the Comptroller and Auditor-General
- (UPSC Prelims 2018) The form of accounts of the Union and the States is prescribed by:
- A. The Parliament
- B. The Prime Minister
- C. The Finance Commission
- D. The President on the advice of the Comptroller and Auditor-General Correct Answer: D. The President on the advice of the Comptroller and Auditor-General
Previous Year Mains Questions Related to Article 150
- Mains 2016: “Discuss the significance of Article 150 in ensuring standardized accounting practices across the Union and the States. How does this article enhance financial transparency and accountability?”
- Mains 2019: “Analyze the role of the Comptroller and Auditor-General of India in advising the President on the form of accounts under Article 150. How does this advisory function impact financial management in India?”
Additional Insights:
- Standardization: Article 150 ensures that all financial accounts are standardized, making it easier to compare and analyze financial data across different levels of government.
- Transparency and Accountability: Standardized accounts enhance transparency and accountability in financial reporting, allowing for better oversight and auditing.
- Expert Advisory Role: The CAG’s advisory role in prescribing the form of accounts ensures that the highest standards of accounting and auditing are maintained.
Understanding Article 150 is crucial for UPSC aspirants as it outlines the provisions for the form of accounts of the Union and the States, ensuring uniformity, transparency, and accountability in financial reporting. This knowledge is essential for both preliminary and main examinations, offering insights into the mechanisms that support effective financial management and oversight in India.