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India's Consolidated Fund Explained

The Consolidated Fund of India is the largest fund of the Government of India where all revenues from taxes, loans, and other receipts are deposited. All expenditures of conducting government business are then deducted from this fund. The fund is under the control of Parliament, and no money can be deposited or withdrawn without Parliament's approval. The Comptroller and Auditor General of India is an independent constitutional authority that audits the accounts of the Union, States, and Union Territories to ensure money from the Consolidated Fund is used appropriately and with Parliament's consent.

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95 views2 pages

India's Consolidated Fund Explained

The Consolidated Fund of India is the largest fund of the Government of India where all revenues from taxes, loans, and other receipts are deposited. All expenditures of conducting government business are then deducted from this fund. The fund is under the control of Parliament, and no money can be deposited or withdrawn without Parliament's approval. The Comptroller and Auditor General of India is an independent constitutional authority that audits the accounts of the Union, States, and Union Territories to ensure money from the Consolidated Fund is used appropriately and with Parliament's consent.

Uploaded by

zaya sarwar
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Consolidated Fund of India

Article 266 of the Constitution of India provides for the Consolidated Fund.
It is the largest fund of the Govt. of India.
All revenues received by Government by way of taxation like income-tax,
central excise, custom, land revenue (tax revenues).
Other receipts flowing to Government in connection with the conduct of
Government business like receipts from Railways, Posts, Transport etc. (non-tax
revenues) are credited into Consolidated fund.
All loans raised by raised by Government by issue of Public notifications,
Treasury Bills (internal debts) and loans obtained from foreign governments and
international monetary institutions (external debt)
And all moneys received by Government in repayment of loans and interest
thereon are also credited into Consolidated Fund.
All expenditure incurred by the Government for the conduct of its business
including repayment of internal and external debt and release of loans to States
/ UT Governments for various purposes is debited against this fund.
Consolidated Fund of India is placed at the disposal of the Parliament.
No money can be deposited into or withdrawn out of this fund by the executive
without a sanction of the Parliament.

Comptroller and Auditor General of India (CAG)


The office of CAG of India is Constitutional office provided under Article 148 of
the Constitution.
He is considered to be the guardian of public purse.

Functions/duties

He audits the accounts of the Union, States and UTs and submits the report to
the President, to the Governor, or to the Lieutenant Governor as the case may
be.
He looks into the matter that the money withdrawn from the Consolidated fund
of India has been withdrawn with the consent of the parliament or not.
He also looks into the fact that whether the money withdrawn from the
Consolidated Fund has been used for the purpose for which it was withdrawn or
not.
Audit Jurisdiction - The organisations subject to the audit of CAG are:

All the Union and state Government departments and offices including the
Indian Railways and Posts and Telecommunications.
About 1200 public commercial enterprises controlled by the Union and State
Govts.
Around 400 non-commercial autonomous bodies and authorities owned or
controlled by the Union and State Govts.
Over 400 authorities and bodies substantially financed from Union or State
revenues.

Safeguard extended to CAG

CAG is appointed for a fixed tenure and can be removed in the manner the
judges of the Supreme Court are removed.
The tenure of CAG is 6 years or till 65 years of age whichever is earlier.
CAG shall not be eligible for further office either under Union or any State Govt.
i.e. after retirement he is not eligible for reappointment.
Salary allowances and the administrative expenditure of CAG are charged on
Consolidated Fund of India.
Neither the salary of CAG nor his rights in respect of leave of absence, pension
or age of retirement shall be varied to his disadvantage after his appointment.

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