Just as the common citizen keeps his money somewhere, in the same way the government also keeps his money in a particular place, it is called the Consolidated Fund.
Although this is not the same as keeping money like citizens, it is very comprehensive and also very sensitive; How? Will know later, In this article, we will discuss the Consolidated Fund, Public Accounts and Contingency Fund of India in a simple and easy way;
Consolidated Fund, Public Account and Contingency Fund
Constitution Three types of funds have been mentioned in this :-
1. Consolidated Fund of India
2. Public Accounts of India
3. Contingency fund of India .
Similarly, there are similar funds for the states.
1. Consolidated funds
It is also known as the Treasury or Treasury of India. This applies to all the states also and the same words are used for the Consolidated Fund of the states also.
Article 266(1) of the Constitution provides for the Consolidated Fund for India and for the States of India .
In the context of India, it is the largest fund in India that is kept under the Parliament, that is, no money can be withdrawn/deposited or charged into it without the prior approval of the Parliament.
Similarly in the context of the state, it is the largest fund of the state which is under the state legislature , and no money can be withdrawn/deposited or charged into it without the prior approval of the legislature.
Any money that the governments withdraw from the Consolidated Fund is treated as a borrowing which the government has to deposit back into it. The bill which is used to withdraw money from the Consolidated Fund is called the Appropriation Bill. Read the budget for how this happens .
Expenditure from Consolidated Fund
There are two types of expenditure from Consolidated Fund ;
(1) Expenditure charged on the Consolidated Fund
There is no voting in Parliament for this because Parliament knows that this money will have to be spent. This is because it is already decided by the Parliament. Although there is a discussion on that. The following expenses are included in the charged expenditure;
1. Emoluments and allowances of the President and other expenses of his office.
3. Salaries, allowances and pension of Judges of Supreme Court.
4. High Court Judges Pension (Remember here that the salaries of the High Court judges are charged on the Consolidated Fund of that state.)
5. Salaries, allowances and pensions of the Comptroller and Auditor General of India.
6. Salaries of the Chairman and Members of the Union Public Service Commission, Allowances and Pension.
7. Administrative expenses of the Supreme Court, the Office of the Comptroller and Auditor General of India and the Office of the Union Public Service Commission, including salaries, allowances and pensions of the employees working in these offices.
8. Debt burdens on which the Government of India is liable including interest, deposits, fund charges and other expenses relating to borrowing and debt servicing and debt redemption. any other expense.
(2) General expenditure or expenditure incurred out of the Consolidated Fund
Such expenditure is voted on in Parliament and can be released only after it is passed.
Where does the money in the Consolidated Fund come from?
Money comes into the Consolidated Fund from all the main sources of income. For example, tax revenue, debt (i.e. money borrowed by the government), interest money (i.e. interest from government loans) , money received from repayment of loans, profits of government companies, etc. It is audited by CAG .
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2. Public Accounts of India
Under Article 266(2), it has been provided for in India and the States of India. Public Accounts is a fund in which those funds are kept which are not the main source of income of the government. It is kept with the government as a security and security.
For example; Employee provident fund – This is public money which is deposited in the public account with the government, it has to be returned when the time comes. Similarly some other examples can also be taken such as Savings certificate, fine collected by court etc.
This fund is under the executive. The money spent on this is checked by the CAG.
3. Contingency fund of India
The Contingency Fund of India has been arranged under Article 267(1) . Similarly , provision of Contingency Fund has been made for the states of India under Article 267(2) .
In 1951, a Contingency Fund Act was passed in India. Under which a contingency fund was created. At present, this fund is of Rs 500 crore, which is put in it from the Consolidated Fund.
As the name suggests, it is for emergency situations; Where there is a need for quick money, that is, there is no time to stop till the voting is done for it in Parliament. In such a situation, the executive can withdraw money from it quickly.
Overall, this is the Consolidated Fund, Public Accounts and Contingency Fund, I hope it is understood. Links of other articles are given below, do visit them also.
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