✨ Who audits PRIs ?

👉The audit of accounts of Panchayati Raj Institutions (PRIs) is provided for in the 73rd Constitutional Amendment, 1992.

👉 Specifically:

📘 Article 243J – Audit of accounts of Panchayats
•It says:

“The Legislature of a State may, by law, make provisions with respect to the maintenance of accounts by the Panchayats and the auditing of such accounts.”

👉So the audit of PRI accounts is governed by Article 243J of the Constitution.
•The State Legislature decides the detailed mechanism.
•In practice → audit is done by the State Local Fund Audit Department (or equivalent) under technical supervision of the CAG.

👉Final accountability → Report submitted to State Legislature through the Governor.

👉Each state passes its own Panchayati Raj Act → specifies audit mechanism.
•Example: In Kerala, PRIs are audited by the Director of Local Fund Audit, under CAG’s supervision.
•In Karnataka, Local Fund Audit + CAG sample checks.

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💥PRELIMS FACT BOOSTER

☑️Least Developed Countries (LDCs);
•LDCs are a category of countries recognized by the United Nations (UN) as the poorest and most vulnerable segment of the international community.
•The classification was established in 1971 by the UN.

1. Criteria for LDC Classification (UN)

A country is designated as an LDC if it meets criteria in three areas:
1.Income Criterion
•Gross National Income (GNI) per capita below a threshold (~$1,018 in 2021, reviewed every 3 years).
2.Human Assets Index (HAI)
•Based on nutrition, health, education indicators.
3.Economic and Environmental Vulnerability Index (EVI)
•Measures exposure to natural disasters, economic shocks, low export base, etc.

2. Global Status
•As of 2024, there are 45 LDCs (was 46 until Bhutan graduated in 2023).
•Regional Distribution:
•Africa → 33
•Asia-Pacific → 9 (incl. Afghanistan, Nepal, Bangladesh until 2026 graduation path)
•Caribbean → 1 (Haiti)
•Others → e.g., Yemen, Solomon Islands.

3. Features of LDCs
•High poverty & low per-capita income.
•Predominantly agrarian economies, low industrialization.
•Dependence on foreign aid and concessional finance.
•Weak human development indicators (health, literacy).
•Vulnerability to climate change, pandemics, and global shocks.

4. Challenges Faced by LDCs
•Economic: Debt traps, low FDI inflows, dependence on primary commodities.
•Social: Poor health systems, malnutrition, low literacy.
•Political: Weak institutions, internal conflicts, instability.
•Environmental: Natural disasters, climate vulnerability, food insecurity.
•Global Integration: Marginalized in global trade, lack of competitiveness.

5. International Support Mechanisms
•Preferential Market Access: e.g., Duty-Free Quota-Free (DFQF) schemes under WTO.
•ODA (Official Development Assistance): Higher aid commitments for LDCs.
•TRIPS Waivers: Flexibility under WTO for pharma & tech.
•UN’s Istanbul Programme of Action (2011–2020) & Doha Programme of Action (2022–2031) for sustainable development.

6. Graduation from LDC Status
•A country graduates if it meets the criteria in 2 consecutive triennial reviews.
•Examples:
•Botswana (1994), Maldives (2011), Bhutan (2023).
•Bangladesh, Nepal, Laos, and Solomon Islands are on track for graduation in coming years.

7. Relevance for India
•India shares borders with LDCs (Nepal, Bangladesh, Myanmar, Afghanistan).
•India provides development aid, capacity building, scholarships to LDCs.
•India champions LDC interests in WTO & climate negotiations (equity, CBDR principle).
•Engagement with LDCs is part of South-South Cooperation.

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