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Which statement about the Comptroller and Auditor General of India (CAG) is correct?

The CAG audits the accounts of the Union and the States, and reports are submitted to the President or Governor and laid before Parliament or the State Legislature. The CAG is appointed by the President, and does not prepare the Budget, which is the Finance Ministry's task.

  1. AThe CAG is appointed by the Prime Minister and can be removed by the Cabinet
  2. BThe CAG audits the accounts of the Union and the States and submits reports to the President or Governor, which are laid before the legislatureCorrect
  3. CThe CAG prepares the Union Budget and presents it in Parliament
  4. DThe CAG is removable in the same manner as a Supreme Court judge only after a Cabinet decision

Explanation

The CAG is appointed by the President and audits Union and State accounts. Audit reports go to the President or Governor and are placed before Parliament or the State Legislature. The Budget is prepared by the Finance Ministry, and removal follows the Supreme Court judge procedure through Parliament, not a Cabinet decision, so the other options are wrong.

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