The Central Government’s fiscal deficit in the first five months of 2023-24 touched 36 percent of the full-year target, according to the data released by the Controller General of Accounts (CGA).
About Controller General of Accounts (CGA)
- CGA, in the Department of Expenditure, Ministry of Finance, is the Principal Accounting Adviser to the Government of India.
- It was established in October 1975 to administer matters pertaining to the departmentalisation of the accounts of the Union.
- CAG is responsible for establishing and managing a technically sound management accounting system.
- The Office of CGA prepares monthly and annual analysis of expenditure, revenues, borrowings, and various fiscal indicators for the Union Government.
- It further formulates policies relating to general principles, forms, and procedures of accounting for the Central and State Governments.
- It administers the process of payments, receipts, and accounting in the Central Civil Ministries/ Departments.
- Through its Internal Audit Units in the respective Ministries/Departments, it is responsible for maintaining the requisite technical standards of accounting in the departmentalized accounting offices and for monitoring the financial performance and effectiveness of various programs, schemes, and activities of the civil ministries.
- It also administers banking arrangements for the disbursements of Government expenditures and the collection of government receipts and interacts with the Central Bank for the reconciliation of cash balances of the Union Government.
- CGA is also responsible for coordination and monitoring the progress of the submission of corrective/remedial action taken notes (ATNs) on the recommendations contained in Public Accounts Committee’s (PAC) reports as well as the Comptroller & Auditor General (CAG) reports through its web based Audit Para Monitoring System (APMS).
- It also looks after the pensions of the Central government employees.
Q1) What is Fiscal Deficit?
When the government spends more than its total income, such a situation is called a fiscal deficit. It is calculated by subtracting the total income from the total expenditure and is either expressed in absolute terms or as a percentage of the GDP (Gross Domestic Product).