60.With reference to the Union Government, consider
the following statements:
- The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
- No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
- All the disbursements made from Public Account also need the authorization from the Parliament of India.
- Which of the statements given above is/are correct?
- a) 1 and 2 only
- b) 2 and 3 only
- c) 2 only
- d) 1, 2 and 3
The correct answer is 2 only.
- The budget (Annual Financial Statement) is prepared by the Department of Economic Affairs. Hence, Statement 1 is Not Correct.
- Provident fund deposits, savings bank deposits, remittances etc are credited to the Public Account.
- The Public Account is operated by executive action i.e. payment from this account can be made without Parliamentary appropriation. Hence, Statement 3 is Not Correct.
- The Constitution of India provides for the following three kinds of funds for the Central government:
- Consolidated Fund of India (Article 266)
- Public Account of India (Article 266)
- Contingency Fund of India (Article 267)
Additional Points
- Consolidated Fund of India
- This is a fund to which all receipts are credited and all payments are debited. 
- No money out of this fund can be appropriated (issued or drawn) except by parliamentary law. Hence, Statement 2 is correct.
- Public Account of India
- All other public money (other than those which are credited to the Consolidated Fund of India) received by or on behalf of the Government of India shall be credited to the Public Account of India.
- It is operated by executive action, that is, the payments from this account can be made without parliamentary appropriation.
- Such payments are mostly like banking transactions.
- Contingency Fund of India
- It is placed at the disposal of the president, and he can make advances out of it to meet unforeseen expenditures pending its authorisation by the Parliament.
- It is held by the finance secretary on behalf of the President. Like the public account of India, it is also operated by executive action.
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