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CMA Final · Corporate Financial Reporting · Government Accounting in India

Under the Constitution of India, which of the following is the correct description of the Consolidated Fund of India for government accounting purposes?

The Consolidated Fund of India holds all Union revenues, loans raised and loan recoveries. Money can be withdrawn only through appropriation authorised by Parliament. Public account deposits belong to the Public Account, and the Contingency Fund covers urgent unforeseen expenditure, so those descriptions do not fit.

  1. AOnly moneys received as public account deposits such as provident funds
  2. BAll revenues received by the Union, loans raised by it and receipts from repayment of loans, from which appropriation needs Parliament's authorityCorrect
  3. CA fund placed at the President's disposal to meet unforeseen expenditure pending legislative approval
  4. DA fund holding only the proceeds of taxes shared with States

Explanation

The Consolidated Fund comprises all revenues received by the Union, loans raised and recoveries of loans. Withdrawals from it require appropriation by Parliament. Option 0 describes the Public Account, and option 2 describes the Contingency Fund.

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