Q151
Indian PolityCentre-State Relations & Fiscal Federalism
All revenues received by the Union government by way of direct and indirect taxes, money borrowed and receipts from loans given by the government flow into
- a.the Public Accounts of India.
- b.the Consolidated Fund of India.
- c.the Contingency Fund of India.
- d.None of the above
Answer: (B) the Consolidated Fund of India.
Article 266(1) says that all revenues received by the Government of India, all loans raised by it and all money received in repayment of loans form the Consolidated Fund of India. All other public money received by the government, such as provident fund deposits and small savings, goes into the Public Account (Article 266(2)). The Contingency Fund (Article 267) is an imprest at the President's disposal for unforeseen expenditure. Every State likewise has its own Consolidated Fund, Public Account and Contingency Fund, and the accounts are audited by the Comptroller and Auditor General.