Introduction
- 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- Parliamentary approval is generally not required for withdrawals, except when funds are initially withdrawn from the Consolidated Fund and allocated to the Public Account for specific purposes.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.
