Question map
All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the
Explanation
According to Article 266(1) of the Constitution of India, all revenues received by the Union Government, including tax revenues like income tax and excise, as well as non-tax receipts from the conduct of government business (such as Railways and Posts), are credited to the Consolidated Fund of India [6]. This fund also includes all loans raised by the government through treasury bills or internal/external loans, and moneys received in repayment of loans [6]. Money can only be withdrawn from this fund after parliamentary approval [2]. In contrast, the Contingency Fund (Article 267) is an imprest for unforeseen expenditures [2], and the Public Account (Article 266(2)) handles transactions where the government acts as a banker, such as provident funds and small savings [6]. Deposits and Advances are a sub-category within the Public Account [4].
Sources
- [1] https://coa.delhi.gov.in/pao/chapter-1
- [2] https://cag.gov.in/uploads/old_reports/union/union_compliance/2000/Civil/2000_book1/chapter1.pdf
- [6] https://finance.odisha.gov.in/sites/default/files/2020-04/chap_4.pdf
- [4] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > Components of Fiscal Policy > p. 83