GS2 🏛️ Governance

Appropriation Audit

An audit conducted by the CAG to verify whether money granted by Parliament has been spent on the specific purposes for which it was sanctioned.

Context & Background

Core function of supreme audit institutions globally; in India flows from Article 114 (Appropriation Bills).

Distinct from performance audit (examines economy/efficiency/effectiveness — the 3Es) and compliance audit; all three are CAG functions.