Question

With reference to Indian Public Finance, consider the following statements:
1. Disbursements from Public Accounts of India are subject to the Vote of Parliament.
2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.
3. Appropriations and disbursements under the Railway Budget are subject to the same form of parliamentary control as other appropriations and disbursements.
Which of the statements given above are correct?

• A. 1 and 2
• B. 2 and 3
• C. 1 and 3
• D. 1, 2 and 3

Answer 1

The correct option is D 1, 2 and 3

All the three statements are correct. Any sort of disbursement from or appropriation of Indian Public Finance is subject to the approval and regulation of the Parliament of India. Under Article 266 (1) of the Constitution of India, a Consolidated Fund of State (a separate fund for each state) has been established. The Consolidated Fund receives all state government revenues as well as all loans raised by issue of treasury bills. The Public Account was constituted by Article 266(2)of the Indian Constitution. It deals with the transactions that are related to debt and not covered under the Consolidated Fund of India. The Contingency Fund of India established under Article 267 (1) of the Constitution is in the nature of an imprest (money maintained for a specific purpose) which is placed at the disposal of the President to enable him/her to make advances to meet urgent unforeseen expenditure, pending authorization by the Parliament.