The Parliament of India-The Funds

Accounts are a vital part of economic management of a nation. The Indian Constitution mentions 3 types of Central Government funds: the Consolidated Fund of India (Article 266), the Contingency Fund of India (Article 267), and also the Public Accounts of India (Article 266(2)).

The finances of the Indian government are divided into 3 classes, that are mentioned below:

• Consolidated Fund of India
• Contingency Fund of India
• Public Accounts of India

Consolidated Fund of India

According to Article 266 (1) of the Indian Constitution, the ‘Consolidated Fund of India’ for the Union Government includes 

• All revenues of the funds collected by the Union government (for example, tax income from income tax, company taxation, customs and excise charges, similarly as non-tax revenue like licensing fees, dividends, and profits from public sector firms, etc.)
• All treasury bills-issued loans, internal and foreign loans, and every cash received by the Union Government in loan compensation.

Similarly, under Article 266 (1) of the Indian Constitution, a Consolidated Fund of State (a separate fund for every state) has been set up. 

• All revenues (both tax revenues like G.S.T, stamp duty, and there on) are deposited. Non-tax financial gain (such as user fees charged by governments) received by the state government, as well as 
• Any loans obtained through the issuing of treasury bills, internal and external loans, and 
• All cash received by the government in loan compensation, ought to be enclosed within the fund.

When correct accounting processes aren’t followed, the Comptroller and Auditor General of India along with the Public Accounts committee audits these Funds and reports to the Parliament. This fund covers all of the government’s expenses. The government should get legislative authorisation before withdrawing funds from this fund.

It is split into 5 sections, that are as follows:

• Disbursements charged on consolidated funds
• Revenue account (receipts) 
• Revenue account (disbursements) 
• Capital account (receipts) 
• Capital account (disbursements)

Charged Expenditures on Consolidated Funds

The expenditures charged on the Consolidated Funds of India are non-votable, which means that no vote is needed to get approval of these expenses. whether or not the budget is enacted, these prices should be paid within the variety of wages and allowances for:

• The President 
• The Speaker 
• The Deputy Speaker of the Lok Sabha 
• The Chairman and Deputy Chairman of Rajya Sabha 
• Salaries and allowances of Supreme Court judges 
• Pensions of Supreme Court and tribunal judges

Contingency Fund of India

Article 267(1) of the Indian Constitution establishes the Contingency Fund of India. The fund is administered by the President of India in unforeseen situations until the Parliament approves the fund. It is managed by the Finance Secretary (Department of Economic Affairs), on behalf of the President. The India Contingency Fund serves to address calamities and alternative unexpected expenses. It was increased from Rs. fifty crores to Rs. five hundred crores in 2005.

Public Accounts of India

This is established below Article 266(2) of the Constitution. All alternative public cash received by or on behalf of the government of India (other than that attributable to the Consolidated Fund of India) ought to be attributable to the public Account of India. This is created of the subsequent components:

• Various ministries/departments have bank savings accounts.
• National defence fund, similarly as a national modest savings fund
• National Savings and Investment Corporation (money obtained from disinvestment)
• NCCF stands for National catastrophe and Contingency Fund (for Disaster Management)
• Provident fund, communicating insurance, and so on.

The government doesn’t need permission to withdraw funds from this account. Each state could have its own set of comparable accounts. The CAG is liable for auditing all expenditures from the general public Accounts of India.

Controller General of Accounts

The CGA is the Government of India’s Principal Accounting authority. The office is established under the Department of Expenditure under the Ministry of Finance. CGA is the Government of India’s Principal Accounting authority and is responsible for building and maintaining a technically competent Management method of accounting. It additionally compiles and submits the Central Government’s accounts. It additionally oversees pecuniary resource management and internal audits.

Conclusion

To guarantee that the corpus of the Contingency Fund stays intact, the Parliament of India should approve such expenditure and also the withdrawal of the same quantity from the Consolidated Fund. Similarly, under Article 267(2) of the Constitution, every government establishes a Contingency Fund. The Public Accounts of India is established under Article 266(2).