What are the different types of accounts of the Government of
India?
The Government of India has three major types of accounts. These
are listed in the Union Budget. The three are:
(a) Consolidated Fund of India;
(b) Contingency Fund of India, and
(c) Public Accounts.
What is the Consolidated Fund of India?
This is the most important account maintained by the Government of
India. The Consolidated Fund of India contains all the revenues (tax and
non-tax revenues) earned and all the expenditures incurred by the Government of
India.
No money from the Consolidated Fund of India can be
spent by the Government without approval of the Parliament of India.
What is the Contingency Fund of India?
Contingency means ‘unforeseen’ or ‘emergency’. As mentioned above,
all withdrawals from the Consolidated Fund of India require prior
approval of the Parliament.
However, sometimes there are emergency expenses for which the Government may not wait for the Parliament’s approval; like, expenses incurred to tackle a devastating flood/earthquake.
However, sometimes there are emergency expenses for which the Government may not wait for the Parliament’s approval; like, expenses incurred to tackle a devastating flood/earthquake.
In such cases, the Government of India will withdraw funds from
the Contingency Fund of India. Once the expense is met, the Government may seek
approval of the Parliament for such withdrawal. In short, the Parliament’s
approval comes post-facto (i.e., after the expense has been
made).
However, after the Parliament approves such expense, an equal
amount is withdrawn from the Consolidated Fund of India to be put back into the
Contingency Fund of India.
What are Public Accounts?
Public Accounts hold money that does not belong to the Government
of India. Such accounts include the Employees Provident Fund and Small Savings
Scheme. This money belongs to the general public but is held in Government’s
trust.
Whenever withdrawals are made from such accounts, the Government
pays out the amounts without the Parliament’s approval.
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