Short Notes — Ch 21 Social Audit
⚡ Ch 21 — Social Audit
PYQ: 0 in either FAA paper · MCQ bank: very few (in the mixed block). Tier D — skim in 15 minutes. It is in the syllabus, so know the definition, the MGNREGA link and the Gram Sabha role. Nothing more.
1️⃣ The core
Social Audit = a process of reviewing official records to determine whether the expenditure reported by the state reflects the money actually spent on the ground.
⭐ It is a PROCESS, not an event — based on the principle that democratic local governance should run with the consent and understanding of all concerned.
| Point | Answer |
|---|---|
| Term first used in | the 1950s |
| ⭐ In India it is largely limited to | MGNREGA — where it is a statutory requirement |
| Conducted by | the Gram Sabha / its committees |
| Recommended by | the 2nd ARC Report on Local Self-Governance |
| Records inspected | accounts, tax assessments, measurement books, muster rolls |
2️⃣ Objectives (5)
- Assess the gap between needs and resources for local development
- Create awareness among beneficiaries and service providers
- Increase efficacy and effectiveness of local development programmes
- Scrutinise policy decisions in light of stakeholder interests (esp. the rural poor)
- Estimate the opportunity cost of not getting timely access to public services
3️⃣ Advantages
Trains the community in participatory planning · encourages local democracy · encourages community participation · benefits disadvantaged groups · improves transparency and accountability.
4️⃣ 2nd ARC recommendations
- Give adequate publicity to social audit
- Let people inspect the records of local bodies
- Higher-tier panchayats should give a comparative assessment of all panchayats under them
- Encourage social audit of Gram Panchayats by Gram Sabha committees
- Involve Community Based Organisations
5️⃣ ⭐ Don't confuse these three
| Term | What it does |
|---|---|
| Social Accounting (Ch 20) | MEASURES and REPORTS social costs & benefits |
| Social Audit (Ch 21) | VERIFIES — checks whether reported spending matches reality |
| CSR (Sec 135, Companies Act 2013) | the actual SPENDING — 2% of average net profit |
| Financial Audit (Ch 19) | Social Audit (Ch 21) | |
|---|---|---|
| Examines | financial statements | social/physical delivery on the ground |
| Done by | a qualified auditor | the community / Gram Sabha |
| Output | an opinion | public accountability |
| Statutory under | Companies Act | ⭐ MGNREGA |
6️⃣ If you remember nothing else
Social Audit = checking whether reported expenditure matches money actually spent on the ground · it is a PROCESS, not an event · statutory under MGNREGA · done by the Gram Sabha · recommended by the 2nd ARC · Accounting = report · Audit = verify · CSR = spend
🔗 Related
- Full notes: L-21-SOCIAL AUDIT · related: SN-20-Social-Accounting · SN-19-Financial-Audit
- Prev: SN-20-Social-Accounting · Next: SN-22-PFMS
