APPSC Paper I · Executive Officer Paper II · Topic 10

10 APPSC Paper I Temple Income, Budget and Funds questions with answers

27 questions from APPSC EO Gr III 2026 Paper II question paper with answers and APPSC EO Paper II Mock 1 with answers. Try each one, then tap Show answer.

Previous-paper questions are as in the original paper. Medha AI wrote the answers and explanations.

10.1Budget (S.57): estimates and sanctioning authoritiesNotes

  1. Under which Sec. Budget Estimate of a Charitable or Religious Institution or Endowment is sanctioned ?

    1. ASec. 57
    2. BSec. 56
    3. CSec. 55
    4. DSec. 58
    Show answerHide answer

    Answer A. Sec. 57

    Section 57 of the AP Charitable and Hindu Religious Institutions and Endowments Act 30 of 1987 deals with the budget of institutions and its sanction.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q108, final key

  2. A budget estimation is showing the details of

    1. AAudit Report
    2. BProbable receipts and expenditure for the financial year
    3. COnly income assessed for the financial year
    4. DOnly expenditure assessed for the financial year
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    Answer B. Probable receipts and expenditure for the financial year

    A budget estimate sets out both the expected receipts and the proposed expenditure of the institution for the coming financial year.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q109, final key

  3. How many days before an executive authority of institution shall submit budget estimate to the competent authority for sanction ?

    1. A30 days before
    2. B50 days before
    3. C60 days before
    4. D90 days before
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    Answer D. 90 days before

    Under Section 57(1) of Act 30/1987 the executive authority must send the budget estimate to the sanctioning authority 90 days before the close of the financial year.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q110, final key

  4. Competent authority for sanction of annual budgets of institutions for whose annual net income is above 1 crore upto Deputy Commissioner cadre institutions

    1. ADeputy Commissioner
    2. BCommissioner
    3. CRegional Joint Commissioner
    4. DAdditional Commissioner
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    Answer D. Additional Commissioner

    Per the key, budgets of institutions with net income above Rs. 1 crore, up to Deputy Commissioner cadre temples, are sanctioned by the Additional Commissioner.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q111, final key

  5. Competent authority for sanction of annual budgets of 6 (d) institutions i.e., Mutts

    1. ACommissioner
    2. BAdditional Commissioner
    3. CDeputy Commissioner
    4. DRegional Joint Commissioner
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    Answer A. Commissioner

    Mutts are listed under Section 6(d); their annual budgets are sanctioned by the Commissioner of Endowments.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q112, final key

  6. The competent authority for sanction of annual budgets for the Joint Commissioner cadre institutions

    1. AAdditional Commissioner
    2. BDeputy Commissioner
    3. CCommissioner
    4. DRegional Joint Commissioner
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    Answer C. Commissioner

    Temples headed by an EO of Joint Commissioner (or higher) cadre have their annual budgets sanctioned by the Commissioner.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q113, final key

  7. The Deputy Commissioner is competent to sanction annual budgets for the institutions published Under Section

    1. A6 (a)
    2. B6 (c)
    3. C6 (e)
    4. D6 (b)
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    Answer D. 6 (b)

    Section 6(b) institutions (middle-income temples) have their budgets sanctioned by the Deputy Commissioner.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q114, final key

  8. If not applied for supplemental sanction for the amount incurred in excess of budget sanction in the same financial year, whether excess expenditure can ratified in the next financial years ?

    1. AThe excess expenditure incurred over the budget/supplemental sanction can ratified in the next financial years
    2. BNot ratified
    3. CThe Executive Authority is held responsible for the excess expenditure
    4. DThe excess expenditure is objectionable in the audit and surchargable
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    Answer A. The excess expenditure incurred over the budget/supplemental sanction can ratified in the next financial years

    Per the official key, expenditure beyond the budget or supplemental sanction can still be ratified by the competent authority in a later financial year.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q115, final key

  9. Who is the competent authority for sanction of budget for 6 (a) institutions whose annual net income is between Rs. 50 lakhs to 1 crore ?

    1. ADeputy Commissioner
    2. BRegional Joint Commissioner
    3. CAdditional Commissioner
    4. DCommissioner
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    Answer B. Regional Joint Commissioner

    6(a) temples with net income between Rs. 50 lakh and Rs. 1 crore have their budgets sanctioned by the Regional Joint Commissioner.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q116, final key

  10. Who is the competent authority for sanction of budget for 6 (b) institutions whose annual net income is between Rs. 15 lakhs to 50 lakhs ?

    1. AAdditional Commissioner
    2. BRegional Joint Commissioner
    3. CDeputy Commissioner
    4. DAssistant Commissioner
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    Answer C. Deputy Commissioner

    6(b) temples (net income Rs. 15 lakh to 50 lakh) have their budgets sanctioned by the Deputy Commissioner.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q117, final key

  11. Annual Budgets shall be submitted to the concerned authorities for sanction through FAS (Financial Accounting System), only for the institutions under the administrative control of the

    1. ACommissioner and Additional Commissioner
    2. BAdditional Commissioner
    3. CCommissioner, Additional Commissioner, Regional Joint Commissioner and Deputy Commissioner
    4. DCommissioner
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    Answer C. Commissioner, Additional Commissioner, Regional Joint Commissioner and Deputy Commissioner

    Online submission through FAS applies to institutions under the control of the Commissioner, Additional Commissioner, Regional Joint Commissioner and Deputy Commissioner.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q118, final key

  12. Under Section 57 of the Endowments Act 30/87 Budget is in the Chapter of

    1. AChapter – VI
    2. BChapter – V
    3. CChapter – VIII
    4. DChapter – VII
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    Answer D. Chapter – VII

    Section 57 (budget) falls in Chapter VII of Act 30 of 1987, which deals with budget, accounts and audit.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q119, final key

  13. Competent authority for sanction of Budget to the Tirumala Tirupati Devasthanam, Tirupati

    1. AGovernment
    2. BCommissioner
    3. CAdditional Commissioner
    4. DRegional Joint Commissioner
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    Answer A. Government

    TTD has its own chapter in the Act; its budget passed by the TTD Board is sanctioned by the State Government.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q120, final key

  14. If there is a non hereditary trust board to an institution, before submission of Budget for sanction, the approval of the Budget in the Board is necessary or not ?

    1. ANot necessary
    2. BApproval of the Budget in the Board is necessary
    3. COnly approval of Chairman is sufficient
    4. DApproval of trustee is sufficient
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    Answer B. Approval of the Budget in the Board is necessary

    Where a trust board exists, the budget prepared by the EO must be approved by the board before it goes to the sanctioning authority.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q121, final key

  15. To incurring expenditure by an EO of institution the budget sanction is necessary or not ?

    1. ABudget sanction is not necessary
    2. BTrustee permission is sufficient
    3. CChairman of Trust Board permission is sufficient
    4. DNo expenditure incurred without Budget sanction by the competent authority
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    Answer D. No expenditure incurred without Budget sanction by the competent authority

    An EO may spend only within a budget sanctioned by the competent authority; spending without sanction is not allowed.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q133, final key

  16. As per the department's budget rules, a temple earning ₹70 lakh a year with a DC-cadre EO has its budget sanctioned by whom, and why?

    1. ADC – 6(b) band ₹15–50 lakh
    2. BAddl. Commr. – band above ₹1 crore
    3. CCommissioner – all 6(a) temples
    4. DRJC – 6(a) band ₹50 lakh–₹1 crore
    Show answerHide answer

    Answer D. RJC – 6(a) band ₹50 lakh–₹1 crore

    ₹70 lakh is 6(a) and falls in the ₹50 lakh–₹1 crore band, which the department assigns to the Regional Joint Commissioner. Not in the Act: this is the department's budget-sanction delegation, known from the official key of the 2026 EO paper.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  17. In whose prescribed form must the trustee submit the budget under Section 57(1)?

    1. AThe Government
    2. BThe Accountant General
    3. CThe Deputy Commissioner
    4. DThe Commissioner
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    Answer D. The Commissioner

    Section 57(1) requires the budget to be submitted in the form directed by the Commissioner, so that all institutions follow one format.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  18. Under Section 116(6)(a)(v), the share of TTD's annual budget for its corpus (reserve) fund is

    1. A40% of the surplus after items (i)–(iii)
    2. B30% of the surplus after items (i)–(iv)
    3. C15% of each head's provision
    4. D10% of the surplus after items (i)–(iii)
    Show answerHide answer

    Answer D. 10% of the surplus after items (i)–(iii)

    Section 116(6)(a)(v) mirrors Section 57(2)(a)(v): TTD's contribution to its corpus fund is ten per cent of the surplus referred to in the proviso to item (iv), that is, the amount left after items (i)–(iii).

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

10.1Accounts and auditNotes

  1. Whether EO can have power to encash any FDR (Fixed Deposit Receipt) of an institution ?

    1. ANo
    2. BYes
    3. CIn view of the urgency EO can have power to encash FDR
    4. DWith permission of the Trust Board the EO can have power to encash FDR
    Show answerHide answer

    Answer A. No

    Fixed deposits of an institution are its corpus; the EO cannot encash them on his own, and premature closure needs the competent authority's sanction.

    Source: APPSC EO Gr III 2026 Paper II (Notification 10/2025), Q128, final key

  2. A surcharge amount recovered under Section 148(1) is paid to the:

    1. AState Consolidated Fund
    2. BCommon Good Fund
    3. CEndowments Administration Fund
    4. DInstitution or endowment concerned
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    Answer D. Institution or endowment concerned

    Section 148(1): the surcharge recovered from the trustee or person is paid to the charitable or religious institution or endowment concerned, which suffered the loss.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  3. A village temple had annual income of ₹1.5 lakh last year. Who audits its accounts under Section 58?

    1. AAn officer subordinate to the AC, once a year
    2. BThe Section 63 agency, concurrently
    3. CThe Section 63 agency, once a year
    4. DNo one; such temples are exempt
    Show answerHide answer

    Answer A. An officer subordinate to the AC, once a year

    Section 58(2)(c): institutions with income below ₹2 lakh are audited once a year by an officer subordinate to the Assistant Commissioner deputed for that purpose.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  4. Under Section 148(3), the notice to a defaulting trustee gives him how many days to pay before recovery as land revenue?

    1. A30 days
    2. B15 days
    3. C7 days
    4. D90 days
    Show answerHide answer

    Answer B. 15 days

    Section 148(3): the RDO or DC issues a notice asking for payment within 15 days of its receipt; if unpaid, the amount with costs is recovered as land revenue arrears.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

10.1Sources of income and use of fundsNotes

  1. Under Section 68, a trustee objecting to a contribution notice must file a written objection with whom, and within how long?

    1. AThe Commissioner, within 15 days
    2. BThe Commissioner, within 30 days
    3. CThe Deputy Commissioner, within 15 days
    4. DThe Government, within 90 days
    Show answerHide answer

    Answer A. The Commissioner, within 15 days

    Section 68(1) lets the trustee object in writing to the Commissioner within 15 days of receiving a notice under Section 66(1) or 67(2), on liability or quantum. The amount is then payable within 30 days of the order (Section 68(2)).

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  2. Sections 65 to 71, covering contribution, audit fee and the two funds, form which chapter of the Act?

    1. AChapter VII
    2. BChapter VIII
    3. CChapter IX
    4. DChapter X
    Show answerHide answer

    Answer B. Chapter VIII

    Chapter VIII, 'Financial provisions', runs from Section 65 to Section 71: contribution and audit fee, the archakas' salary fund, assessment, the Endowments Administration Fund and the Common Good Fund.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  3. Funds recovered for a defunct institution under Section 73 must first be used for

    1. AThe Common Good Fund
    2. BBuilding a new temple elsewhere
    3. CReviving that same institution
    4. DPaying the department's arrears
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    Answer C. Reviving that same institution

    Section 73(1)(d) says the recovered funds are to be applied to revive the institution or endowment; only if revival is not possible may they go to the purposes in Section 74(2).

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  4. On what basis does the Commissioner issue a notice to an institution for its share to the Common Good Fund under Section 70(3)?

    1. AThe findings of its audit report
    2. BIts previous year's hundi total
    3. CA separate Government order for it
    4. DThe provision in its budget estimate
    Show answerHide answer

    Answer D. The provision in its budget estimate

    Section 70(3) directs the Commissioner to issue notice for the Common Good Fund share on the basis of the provision made in each institution's budget estimate, which Section 57(2)(b) makes compulsory above ₹50,000 income.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

  5. Under Section 111, hundi offerings and donations received at Tirumala go into

    1. ATTD's own fund
    2. BThe Common Good Fund
    3. CThe Endowments Administration Fund
    4. DThe State Consolidated Fund
    Show answerHide answer

    Answer A. TTD's own fund

    Section 111 gives TTD its own fund, made up of hundi offerings, donations and all other receipts; all of TTD's expenditure is paid out of it. TTD then pays fixed sums to the three statutory funds.

    Source: Medha AI, based on the EO Paper II course book (Mr.Competitive)

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