UPSC Prelims 2011 question on Consolidated Fund Receipts

Analysis

The Consolidated Fund of India is the main government fund into which most receipts of the Union Government are credited.

1. Consolidated Fund of India — Correct

Under Article 266(1), all revenues received by the Union Government are credited to the Consolidated Fund of India.

It includes tax revenue, non-tax revenue, loans raised by the government and recoveries of loans given by the government.

2. Contingency Fund of India — Incorrect

The Contingency Fund of India is provided under Article 267.

It is an emergency fund placed at the disposal of the President to meet urgent and unforeseen expenditure, pending parliamentary approval.

3. Public Account of India — Incorrect

The Public Account is also mentioned under Article 266.

It contains money held by the government in trust, such as provident funds, small savings and judicial deposits. This money does not belong to the government.

4. Deposits and Advances Fund — Incorrect

Deposits and advances are generally part of Public Account accounting.

They are not the main fund where Union Government revenues, loans and loan recoveries are credited.