UPSC Prelims 2011 · Question 61 of 100

UPSC Prelims 2011 question on Consolidated Fund Withdrawal

The authorization for the withdrawal of funds from the Consolidated Fund of India must come from

  1. The President of India
  2. The Parliament of India
  3. The Prime Minister of India
  4. The Union Finance Minister
Show answer

Answer: B. The Parliament of India

Verdict

Correct Answer: The Parliament of India

Analysis

Money cannot be withdrawn from the Consolidated Fund of India except through an appropriation made by law passed by Parliament.

1. The Parliament of India — Correct

Under Article 114, no money can be withdrawn from the Consolidated Fund of India unless Parliament passes an Appropriation Act.

This gives Parliament control over government expenditure, also called the power of the purse.

2. President of India — Incorrect

The President gives assent to the Appropriation Bill after it is passed by Parliament.

However, the President alone cannot authorize regular withdrawal of money from the Consolidated Fund of India.

3. Prime Minister / Finance Minister — Incorrect

The Prime Minister and Finance Minister are part of the executive.

They may propose expenditure through the Budget, but actual withdrawal from the Consolidated Fund requires parliamentary approval.

Extra UPSC info

* Article 266 establishes the Consolidated Fund of India.

* It includes government revenues, loans raised and recoveries of loans.

* Article 114 deals with the Appropriation Bill.

* Charged expenditure is discussed in Parliament but not voted upon.

* Voted expenditure is passed through Demands for Grants in the Lok Sabha.

* Article 267 provides for the Contingency Fund of India, used for urgent unforeseen expenditure.

How to crack it

The Parliament of India authorizes withdrawal from the Consolidated Fund of India through the Appropriation Act.

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