Funds

The Consolidated Fund of India is the most important of all government accounts. Revenues received by the government and expenses made by it, excluding some items (like provident fund deposits, judicial deposits, saving bank deposits, departmental deposits), are part of the Consolidated Fund. This fund was constituted under Article 266 (1) of the Constitution of India. All revenues received by the government by way of direct taxes and indirect taxes, money borrowed, and receipts from loans given by the government flow into the Consolidated Fund of India. All government expenditure is made from this fund, except for some items which are met from the Contingency Fund or the Public Account. Importantly, no money can be withdrawn from this fund without the Parliament's approval.

The Consolidated Fund of India is the most important of all government accounts. This fund was constituted under Article 266 (1) of the Constitution of India. All revenues received by the government by way of direct taxes and indirect taxes, money borrowed and receipts from loans given by the government flow into the Consolidated Fund of India. All government expenditure is made from this fund, except for some items which are met from the Contingency Fund or the Public Account.

**Statement 1 is incorrect:** Department of Economic Affairs prepares the Budget. **Statement 2 is correct:** As per Article 114 of the Constitution, the government can withdraw money from the Consolidated Fund only after receiving approval from Parliament. **Statement 3 is incorrect:** Public Accounts include provident fund deposits, judicial deposits, savings bank deposits, departmental deposits, remittances and so on. This account is operated by executive action, that is, the payments from this account can be made without parliamentary appropriation. Such payments are mostly like banking transactions. So, only the second statement is correct.