- The Public Account of India is a constitutionally created fund, established under Article 266(2), designated to accommodate specifically mobilized financial resources of the central government.
- All other public money, except that credited to the Consolidated Fund of India, received by or on behalf of the Government of India must be credited to the Public Account of India.
- This account serves as a repository for trust-held funds by the government, including Provident Funds, Small Savings collections, and revenue allocated for project-specific expenditures.
Public Account of India
- The Public Account of India serves as a ledger for transactions where the government acts as a banker. Deposits in provident funds, judicial deposits, savings bank deposits, departmental deposits, and remittances exemplify such transactions.
- Article 266 (2) of the Constitution established this fund. Funds within the public accounts are not owned by the government and must be returned to the depositors.
- Parliamentary approval is generally not required for withdrawals, except when funds are initially withdrawn from the Consolidated Fund and allocated to the Public Account for specific purposes.
- Each state may have its own public account variant.
- The Comptroller and Auditor General oversees the audit of all expenditures from the Public Account of India.
- There are five primary heads of accounts under the Public Account —
- Small Savings,
- Provident Fund and Other Accounts,
- Reserve Funds,
- Deposits and Advances,
- Suspense and Miscellaneous, and
- Remittances.
Difference Between Consolidated Fund and Public Account of India
| Details | Consolidated Fund (Article 266(1)) | Public Account of India (Article 266(2)) |
| Importance | Most significant | Holds government revenue |
| Accounts for all government revenue | Serves as a banker | |
| Taxable and non-taxable | Future payments to legitimate owners | |
| Approval | Parliamentary approval required | Presidential authorization |
| Examples | Loans, interest, allowances, salaries | Provident funds, deposits, remittances |
Conclusion
The Indian Constitution stipulates the maintenance of government accounts. It mandates the establishment of a public account, a contingency fund, and the Consolidated Fund of India. Specifically, Article 266 of the Constitution delineates the creation of these funds. The Public Account of India is a constitutional provision designed to contain certain mobilized financial resources of the central government. Article 266 defines the Public Account as funds received on behalf of the Government of India.
FAQs
Q: What is the Public Account of India?
A: The Public Account of India is one of the three parts of the government accounts, along with the Consolidated Fund of India and the Contingency Fund of India. It records transactions that do not belong to the government but are received and disbursed by it.
Q: What are the main sources of revenue for the Public Account of India?
A: The primary sources of revenue for the Public Account of India include deposits and receipts related to specific schemes, funds, and other miscellaneous transactions. This includes deposits from individuals, organizations, and governments for specific purposes such as savings schemes, small savings, and other public funds.
Q: How is the Public Account of India different from the Consolidated Fund of India?
A: The Consolidated Fund of India consists of all revenues received by the government, including taxes, loans raised, and other receipts, which are subject to parliamentary approval for expenditure. In contrast, the Public Account records transactions that do not form part of the Consolidated Fund, such as funds held in trust, specific schemes, and other deposits.
Q: Who manages the Public Account of India?
A: The Public Account of India is managed by the executive branch of the government, specifically the Ministry of Finance. However, the transactions are subject to parliamentary oversight and audit by the Comptroller and Auditor General of India (CAG) to ensure transparency and accountability.
Q: What are some examples of transactions recorded in the Public Account of India?
A: Examples of transactions recorded in the Public Account include proceeds from the sale of shares, deposits for specific schemes like the National Small Savings Fund, funds held in trust, and receipts from loans raised by the government for specific purposes such as irrigation projects or infrastructure development.
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