Skip to content

CMA Final · Corporate Financial Reporting · Government Accounting in India

Under the constitutional framework of Government Accounting in India, which of the following is the Consolidated Fund of India designed to hold?

The Consolidated Fund of India holds all revenues received by the Union Government, loans it raises, and money received in repayment of loans it has given. Withdrawals need Parliament's appropriation. Trust money sits in the Public Account and emergency advances come from the Contingency Fund.

  1. AOnly loans received from the Reserve Bank of India
  2. BAll revenues received by the Union Government, loans raised by it, and receipts from recovery of loans grantedCorrect
  3. COnly money held by the Government as a trustee or for specific deposits
  4. DOnly advances meant to meet unforeseen expenditure

Explanation

The Consolidated Fund of India (Article 266(1)) holds all revenues received by the Union, all loans raised by it through treasury bills, loans or ways and means advances, and all money received in repayment of loans given. Money held in trust or as deposits goes to the Public Account, and unforeseen expenditure is met from the Contingency Fund. Hence the option describing revenues, loans and recoveries is correct.

Did you get it right without looking?

One question tells you little. A timed set on Government Accounting in India shows your real accuracy, how long you take and where you lose marks.

Practise Government Accounting in IndiaFree diagnostic mock

More Government Accounting in India questions