- The Consolidated Fund of India (Article 266(1)) receives all revenues of the Union Government, including tax and non-tax revenues, money received from repayment of loans, and loans raised by the government. - All government expenditure, except for extraordinary items met from the Contingency Fund or Public Account, must be incurred from the Consolidated Fund. - No money can be withdrawn or spent from the Consolidated Fund of India without prior authorization by Parliament. This is done through the annual budgetary process, where Parliament approves the expenditure estimates via Appropriation Bills. - The Public Accounts of India (Article 266(2)) holds money received by the government other than revenue, like Provident Funds, small savings, deposits, etc. These are essentially government acting as a banker. Expenditure from this account does not require parliamentary appropriation. - The Contingency Fund of India (Article 267) is an imprest fund for meeting unforeseen expenditures. Expenditure can be made from this fund without prior parliamentary approval, but the amount spent is recouped later from the Consolidated Fund after parliamentary authorization.
Parliamentary authorization is necessary prior to expenditure from
Asked in WBPSC CS Prelims 2023 · Topic: The Parliament (Budget in Parliament: Financial Procedures and Funds)
More Indian Polity and Governance questions
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