Question

The Consolidated Fund of India is a fund in which _______________.

• A. all taxes collected by the Union as well as state government are deposited
• B. all money received by or on behalf of the Government of India is deposited
• C. the Union as well as state governments make equal contribution to this fund and out of this, all charged expenses are met
• D. savings of the Union and state governments are deposited to meet unforeseen expenses

Answer 1

The correct option is D savings of the Union and state governments are deposited to meet unforeseen expenses

Consolidated Fund of India is a constitutionally recognized Fund created for parking the identified revenues of the central government. As per Article $266$ of the Constitution, all revenues received by Government, loans raised by it, and also its receipts from recoveries of loans granted by it from the Consolidated Fund; all expenditure of Government is incurred from the Consolidated Fund of India and no amount can be drawn from the Consolidated Fund without authorization from Parliament. All loans obtained from foreign governments and international institutions (external debt) are credited into this fund. Each state has its own consolidated fund as well.