Consolidated Fund of India
The fund to which all receipts and expenditures are credited and debited is known as the Consolidated Fund of India. Article 266(1) of the Indian Constitution established the Consolidated Fund of India. Three different forms of central government finances are mentioned in the Indian Constitution: the Public Accounts of India (Article 266), the Contingency Fund of India (Article 267), and the Consolidated Fund of India (Article 266).
Consolidated Fund of India Meaning
The Consolidated Fund of India refers to the total of the Government of India’s receipts from income tax, Customs, central excise, and other sources, as well as its outlays, minus unusual items. Article 266(1) of the Indian Constitution provided for its establishment.
Consolidated Fund of India Formation
The Consolidated Fund of India is made up of all of the government of India’s receipts, all of the loans it has obtained through the issuance of treasury bills, loans, or other forms of advances, and all of the money it has received in loan repayments. All legally mandated payments are made on behalf of the Indian government using this fund.
Except for extraordinary items, which are paid for from the Contingency Fund or the Public Account, all government expenses are paid out of this fund. A parliamentary act must be passed in order to allocate (issue or draw) funds from this fund. It was established in accordance with Article 266 (1) of the Indian Constitution. Each state is allowed to create a Consolidated Fund of India with exactly the same qualities. The appropriate legislatures get reports on the management of the consolidated funds from the Comptroller and Auditor General of India, who also audits the money.
Consolidated Fund of India Parts
The Indian Consolidated Fund is organized into five sections, including:
- Revenue account (receipts)
- Revenue account (disbursements)
- Capital account (receipts)
- Capital account (disbursements)
- Disbursements charged on the Consolidated Fund.
Consolidated Fund of India and Charged Expenditure
When presenting the annual budget, India’s consolidated fund refers to charged expenditures as non-votable expenses. The Lower House of Parliament or the State Assemblies must first give their approval before the Indian government can spend any money from the Consolidated Fund. According to Articles 112(3) and 202(3) of the Indian Constitution, some chargeable expenditure is made from the consolidated budget without the need for a vote.
Consolidated Fund of India UPSC
The Consolidated Fund of India (Article 266), the Contingency Fund of India (Article 267), and the Public Accounts of India (Article 266), three funds established by the Constitution of India, are crucial for the day-to-day operations of the Government of India because they hold the revenue and expenditure of the Government. Students can read all the details related to UPSC by visiting the official website of StudyIQ UPSC Online Coaching.