Q. Consider the following statements regarding the Social Audit:
1. It is legally mandated under section 17 of the MGNREG Act for all works in gram panchayat
2. Social audit is one of the key parameter to judge efficiency of states under Financial Management Index
Which of the above statements is/are incorrect?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 and 2

Answer: D

About social audit: 

  • Section 17 of the MGNREG Act mandates social audit of all works in gram panchayats 
  • The Audit of Scheme Rules were notified in 2011, and The Auditing Standards for Social Audit were notified in 2016 
  • Social audit is a key parameter to judge the efficiency of states in management of finances under, Financial Management Index released by Rural Development Ministry 
  • The 2011 Rules say the state government will facilitate the social audit of work done under MGNREGA in every GP once every six months. 

Source: Article