UPSC Prelims 2004·GS1·polity-and-governance·governance

With reference to Indian Public Finance, consider the following statements: 1. Disbursements from Public Accounts of India are subject to the Vote of Parliament. 2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State. 3. Appropriations and disbursements under the Railway Budget are subject to the same form of parliamentary control as other appropriations and disbursements. Which of the statements given above are correct?

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  1. Aa) 1 and 2
  2. Bb) 2 and 3Correct
  3. Cc) 1 and 3
  4. Dd) 1, 2 and 3

Explanation

Statement 1 is incorrect. Disbursements from the Public Account of India are not subject to the vote of Parliament. These funds (like provident funds, small savings) are essentially deposits that the government holds in trust and has to repay. Parliamentary vote is required for appropriations from the Consolidated Fund of India. Statement 2 is correct. Article 266(1) of the Constitution provides for a Consolidated Fund for each State. Article 266(2) provides for a Public Account for each State. Article 267(2) provides for a Contingency Fund for each State. Statement 3 is correct. Even when the Railway Budget was presented separately (before its merger with the General Budget in 2017), all appropriations and disbursements under it were subject to the same form of parliamentary control, including voting on demands for grants, as other government expenditures. Since statements 2 and 3 are correct, option B is the right answer.
polity-and-governance: With reference to Indian Public Finance, consider the following statements: 1. Disbursements from Public Accounts of Ind
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