- Consolidated Fund of India
- Purpose of Consolidated Fund
- Importance of Consolidated Fund
- Parts of Consolidated Fund of India
- Charged Expenditures on Consolidated Fund of India
The Constitution of the Republic of India provides for the way within which the accounts of the government ought to be unbroken. Article of the Constitution provides for the creation of a Consolidated Fund of Republic of India, Contingency Fund, and Public Account. All revenues received loans raised and every one sum of money received by the govt. in reimbursement of loans are attributable to the Consolidated Fund of Republic of India and every one expenditure of the government are incurred from this fund. Cash is spent through this fund providing condemned by the Parliament. The consolidated Fund has any been divided into ‘Revenue’ and ‘Capital’ divisions.
Contingency Fund permits the govt. to satisfy unforeseen expenditure that cannot wait for approval of the Parliament. For meeting such exigencies, advances are created to the manager from the Contingency Fund that is afterward according to the Parliament for recoupment from the Consolidated Fund of India.
One of the foremost distinctive options of the government accounts in India is that the minute detail with that the monetary transactions are recorded within the account books. The intermediate levels represent sub-functions, programs, schemes, and sub-schemes. The purposeful classification applies to receipts furthermore as payments.
Consolidated Fund of India
All revenues received by the govt. by the approach of taxes like tax, Central Excise, Customs and alternative receipts flowing to the govt. about the conduct of presidency business i.e. Non-Tax Revenues are attributable to the Consolidated Fund deep-seated below Article 266 (1) of the Constitution of Republic of India. Similarly, all loans raised by the govt. by the issue of Public notifications, treasury bills (internal debt), and loans obtained from foreign governments and international establishments (external debt) are attributable to this fund.
Purpose of Consolidated Fund
The Consolidated Fund of India includes revenues that are received by the government through taxes and expenses incurred within the variety of borrowings and loans. It represents one in all the 3 elements of the Annual budget with the opposite two: the Contingency Fund and Public Account.
The Consolidated Fund of India is that the most vital of all government accounts. Revenues received by the govt. and expenses created by it, excluding the exceptional things, are a part of the Consolidated Fund. 2 expenses charged to that are:
- The President, Speaker / Deputy Speaker of Lok Sabha, Chairman/ Deputy Chairman of Rajya Sabha, Salaries and Allowances of Supreme Court judges, Pensions of Supreme Court
- Debt charges of the presidency of India
All Revenue generated from taxes, asset sale, earnings etc enter the Consolidated Fund of India and those fund gets cash from:
- Revenue earned indirect taxes like tax, company tax, etc
- Revenue earned in indirect taxes like GST
- Income and profits from PSUs (Public Sector Undertakings)
- Money earned through government’s general services
- Disinvestment receipts
- Debt repayments
- Loan recoveries
Keep in mind that no cash is withdrawn from the Consolidated Fund of India, while not the government securing the approval of the Parliament.
Importance of Consolidated Fund
The Consolidated Fund is that the most vital of all government accounts. Revenues received by the govt. and expenses created by it, excluding exceptional things, are a part of the Consolidated Fund. This fund was deep-seated below Article 266 (1) of the Constitution of India. All revenues received by the govt. by the approach of direct or indirect taxes, cash borrowed, and receipts from loans given by the govt. flow into the Consolidated Fund.
All government expenditure is formed from this fund, except exceptional things that are met from the Contingency Fund or the general public Account. Significantly, no cash is withdrawn from this fund while not the approval of the State general assembly.
Importantly, Government monies within the Consolidated Fund can have protection from the Constitution.
Article 266 (3) is an freelance and categorical provision meant to secure against all unauthorized withdrawals of the taxpayer’s cash unbroken within the Fund created by clause (1) of Article 266 itself.
Parts of Consolidated Fund of India
The Consolidated Fund of India is split into 5 elements namely:
- Revenue account (receipts)
- Revenue account (disbursements)
- Capital account (receipts)
- Capital account (disbursements)
- Disbursements charged on the Consolidated Fund.
Charged Expenditures on Consolidated Fund of India
No ballot takes place for the withdrawal of those expenditures from the Consolidated Fund of India. These charges ought to be paid whether or not the Budget is passed or not.
The expenses below this class embrace salaries and allowances of:
- The President
- The Speaker
- The Lok Sabha Deputy Speaker
- Raiva Sabha Chairman and Deputy Chairman
- Salaries and allowances of Supreme Court judges
- Pensions of Supreme Court and tribunal judges