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CMA Final · Corporate Financial Reporting · Government Accounting in India

In the Union Government's accounts, the Public Account of India (Article 266(2)) is best described as:

The Public Account of India holds money received by the government as banker or trustee, such as provident funds, small savings and deposits. Because these are not government's own funds, disbursements from it do not require Parliamentary appropriation.

  1. AA fund where the government acts as a banker or trustee, so withdrawals do not need Parliamentary appropriationCorrect
  2. BA fund of advances to meet urgent unforeseen expenditure, later reimbursed by Parliament
  3. CA fund that records only revenue receipts from taxes and duties
  4. DA fund from which all charged expenditure is met only after a Vote on Account

Explanation

The Public Account holds money such as provident funds, small savings and deposits, where the government is a custodian. Such payments are not voted by Parliament. The option describing urgent advances refers to the Contingency Fund, and tax receipts go to the Consolidated Fund.

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