Question

Read the following statements and choose the correct option.

(I) The Consolidated Fund of India is a government account.
(II) Money Bills controls the Consolidated Fund of India.
(III) The Cabinet has the freedom to withdraw any amount without anybody's consent.

• A. Only (I) and (II) are true.
• B. Only (I) and (III) are true.
• C. Only (III) is true.
• D. Only (II) and (III) are true.

Answer 1

The correct option is A Only (I) and (II) are true.

The government accounts are divided into three parts:
(i) Consolidated Fund of India
(ii) Contingency Fund of India
(iii) Public account
The Consolidated Fund of India was created under Article 266. It has all the revenues collected by the Indian government credited. The revenues in the form of income tax, excise duty, etc., are credited in this account. All the loans raised by the government are credited to this account. The government meets all the expenditures from this account, and it needs the approval of the Parliament to withdraw any amount from the fund.