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CMA Final · Corporate Financial Reporting · Government Accounting in India

In Union Government accounts, which of the following items is correctly shown under the Public Account of India rather than the Consolidated Fund?

Small savings deposits and provident fund balances are shown in the Public Account because the Government holds them as banker or trustee and must repay them. Tax receipts, grants and interest payments belong to the Consolidated Fund and need Parliamentary appropriation for expenditure.

  1. AIncome-tax collections of the Union
  2. BSmall savings deposits and provident fund balances held by the Government as a bankerCorrect
  3. CGrants-in-aid released to State Governments
  4. DInterest paid on market borrowings

Explanation

The Public Account holds funds the Government holds as a banker or trustee, such as provident funds and small savings. Tax collections, grants and interest payments pass through the Consolidated Fund and need Parliamentary appropriation where expenditure.

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