Financial Management – Public Administration Optional PYQs (1995–2026)

Here are all 55 Financial Management questions asked in UPSC Public Administration Optional Paper II from 1995 to 2026, arranged under the 6 topics of the official syllabus. Within each topic the latest questions come first.

Each question ends with a code such as [2024/15m/3b] – the year, the marks, the word limit (where UPSC set one) and the question number in the paper.

9.1] Budget as a political instrument

8 questions

1. Budget is the pivot around which the whole financial administration revolves. Discuss the socio-economic and political implications of budget. [2025/20m/7b]

2. Budget is an indicator of financial health of a polity which is reflected in the statement of income and expenditure. Discuss. [2020/10m/150w/5b]

3. “Gender budgeting requires rethinking beyond allocations to become a powerful tool of gender mainstreaming.” Discuss. [2018/10m/150w/5c]

4. What merits do you foresee in the proposed merger of the Railway Budget with the General Budget? [2016/10m/6c]

5. Explain how budget can be used as a political instrument. [2015/10m/150w/5b]

6. “Gender Response Budgeting has infused greater accountability of planning departments towards women empowerment programmes.” Examine the statement. [2014/20m/3a]

7. ‘The Budget is more than the economic horoscope of the nation.’ Comment. [2008/20m/200w/5c]

8. “The policy of the government is reflected by various items of the budget.” Explain by distinguishing between a commercial budget and a government budget. [2001/30m/7a]

9.2] Parliamentary control of public expenditure

17 questions

1. Though seldom enacted, Cut Motions remain vital instruments of parliamentary accountability. Comment. [2026/10m/150w/5b]

2. The ‘guillotine’ hastens the budgetary process to meet the timeline. Evaluate the procedure. [2025/10m/150w/5b]

3. “Parliamentary control over public expenditure is declining.” Comment. [2024/10m/150w/5d]

4. Budget proposals in the Parliament / State Legislatures fail to ensure their effective scrutiny. Identify the factors which constrain effective scrutiny of the budget proposals. [2021/20m/6a]

5. Parliamentary Committees bring about accountability in public expenditure. Discuss. [2014/10m/150w/5b]

6. Justify the constitutional provision to treat certain expenditure as charged upon the Consolidated Fund of India. (In about 150 words) [2013/10m/150w/8c]

7. ‘Parliamentary Departmental Committees have played their role effectively in analysing the demands for grants.’ Evaluate. [2012/20m/3a]

8. ‘Questions represent a powerful technique of parliamentary control over expenditure.’ Explain. [2012/12m/150w/5d]

9. “Parliamentary Departmental Committees have played their role effectively in analysing the demands for grants.” Evaluate. [2007/20m/200w/5b]

10. Comment on: “Public Accounts Committee conducts a postmortem examination of Public Accounts.” [2005/20m/200w/5b]

11. Comment on: “The Estimates Committee is a continuous economy committee.” [2004/20m/200w/5a]

12. Comment on: “Questions represent a powerful technique of parliamentary control over expenditure.” [2003/20m/200w/5b]

13. “Control over public expenditure is an essential feature of accountable and responsible financial administration.” In the light of this statement discuss various methods of control over public expenditure which are exercised by the Indian Parliament. [2001/60m/6]

14. Comment on: “The Public Accounts Committee is probably the best medium through the eyes of which the tax-payer sees what has been done with his money.” [1999/20m/200w/5a]

15. Comment on: “The main function of the Public Accounts Committee is to ascertain that the money granted by Parliament has been spent by the government within the scope of the demand.” [1997/20m/200w/5a]

16. Comment on: “The Comptroller and Auditor-General is the friend, philosopher and guide of the Public Accounts Committee.” [1996/20m/200w/5a]

17. Comment on: “The Estimates Committee merely gives a big list of advices.” [1995/20m/200w/5a]

9.3] Role of finance ministry in monetary and fiscal area

8 questions

1. Public debt of states in India has increased significantly in the last one decade. In this context discuss the constraints of the states in planning prudent fiscal management. [2026/20m/6b]

2. The strategy to deal with the non-performing assets of banks may lead to overburdened taxpayers. Examine the role of government to protect the interests of both. [2019/10m/3c]

3. “Financial inclusion needs legal backing but it also requires increasing awareness for it to become a reality.” Discuss. [2018/10m/150w/5b]

4. Justify the budgetary support to nationalized banks to overcome the crisis resulting out of Non-Performing Assets (NPA). [2016/10m/150w/5b]

5. “The initiative of the Income Tax Department on disclosure of black money has had a mixed response.” Give suggestions for tackling this complex problem. [2016/10m/7c]

6. Comment on: The optimism expressed by the proponents of the Financial Responsibility and Budget Management Act, 2003, in ensuring fiscal discipline appears to be unwarranted. [2010/20m/200w/7b]

7. Examine the role of the Finance Ministry of the Union Government in designing and implementing monetary and fiscal policies. [2009/30m/3b]

8. Critically examine the role of the Finance Ministry as the custodian of all public revenues. [1997/60m/6]

9.4] Accounting techniques

4 questions

1. Computerization of treasuries has revolutionized the accounting and budget planning process. Comment. [2023/10m/150w/5d]

2. “Performance budgeting failed because it was applied to sectors/programmes where quantitative evaluation was not feasible.” Examine the principles underlying performance budgeting techniques. [2013/10m/150w/5b]

3. “Accounting is the essence of producing promptly and clearly the facts relating to financial conditions and operations that are required as a basis of management.” Substantiate the statement in the context of accounting methods and techniques in government. (In about 250 words) [2013/20m/250w/6b]

4. What is an output-based performance budgeting system? Analyse this system in the context of India. [2012/15m/7b]

9.5] Audit

5 questions

1. “Social audit has lent a critical edge to the implementation of programmes such as MGNREGA.” Comment. [2018/10m/150w/5d]

2. “Social auditing of flagship programmes of the Central government facilitates the performance of the Comptroller and Auditor-General.” Elaborate the statement with appropriate examples. [2014/20m/6b]

3. “The concept of social audit is more comprehensive than that of traditional audit.” Comment. [2013/10m/150w/5e]

4. “Audit, like the judiciary, the executive and the legislature is one of the important ingredients of democracy.” Comment. [2006/20m/200w/5d]

5. “Audit provides a healthy safeguard against public money going down the drain.” Comment. [2005/30m/7a]

9.6] Role of Controller General of Accounts and Comptroller and Auditor General of India

13 questions

1. The office of the Comptroller and Auditor General of India and its functioning is away from the public eye. Still it is one of the most important office under the constitution. Discuss. [2024/20m/8b]

2. Accountability of the Executive to the Parliament in the domain of financial administration is secured through CAG reports. Discuss. [2023/20m/7a]

3. Comptroller and Auditor General (CAG) is today a primary cause of widespread and paralysing unwillingness on the part of government institutions to decide and act. Discuss. [2022/20m/7b]

4. The office of the Comptroller and Auditor General of India stands on the pillar of autonomy. Discuss the major lacunae in the functioning of this constitutional body and also suggest measures for its strengthening. [2020/20m/6a]

5. “The Office of the Controller General of Accounts (CGA) is expected to strengthen public financial management in India.” Discuss its mandate. [2017/10m/150w/5e]

6. Discuss the changes in the powers of the Comptroller and Auditor-General of India (CAG) following a recent Supreme Court judgement in a case concerning a private service provider. [2014/10m/150w/5a]

7. “Social auditing of flagship programmes of the Central government facilitates the performance of the Comptroller and Auditor-General.” Elaborate the statement with appropriate examples. [2014/20m/6b]

8. Comment on the following statement: “The Comptroller and Auditor-General (CAG) of India is a prosecutor with a law that hobbles its functioning, a judge without the power to sentence and a litigant with no right to appeal.” [2011/30m/3a]

9. Comment on: “The role of Comptroller and Auditor General is a limited one.” [2002/20m/200w/5b]

10. Comment on: “It is the audit of propriety that distinguishes the audit of the Comptroller and Auditor General of India (CAG) from the audit made by any professional auditor.” [2001/20m/200w/5b]

11. Do you think that the Comptroller and Auditor-General’s role is to maintain the dignity, independence, detachment of outlook and fearlessness necessary for a fair, impartial and dispassionate assessment of the actions of the executive in the financial field? Give arguments. [1999/60m/6]

12. Comment on: “CAG should be watch-dog and not a blood-hound.” [1998/20m/200w/5d]

13. Comment on: “The Comptroller and Auditor-General is the friend, philosopher and guide of the Public Accounts Committee.” [1996/20m/200w/5a]

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Last updated: 30 October 2026