Q. Consider the following statements about the Market Stabilization Scheme (MSS):

1. Under the MSS, the Government of India issues Treasury Bills and dated securities in addition to its normal market borrowing programme up to an annual ceiling.
2. The amount raised under the MSS is credited to the MSS Account, which forms part of the Consolidated Fund of India.
3. The accounts relating to the MSS are subject to audit by the Comptroller and Auditor General of India.

Which among the above statements is/are correct?
Answer: 1, 2 & 3 are correct
Notes: All three statements are correct. The Market Stabilization Scheme was created to absorb surplus liquidity by issuing Treasury Bills and dated securities over and above the normal borrowing programme, subject to a ceiling. The proceeds are parked in the MSS Account, which is treated as part of the Consolidated Fund of India. Since these are government accounts, they fall within the audit scope of the Comptroller and Auditor General of India.