Previous Year Question
With reference to the Union Government, consider the following statements:
The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
No amount can be withdrawn from the Consolidated Fund of India without the authorisation from the Parliament of India.
All the disbursements made from Public Account also need the authorisation from the Parliament of India.
Which of the statements given above is/are correct?
1 and 2 only
2 and 3 only
2 only
1, 2 and 3
Correct Answer: C
Detailed Solution
Statement 1 is incorrect. The Union Budget is prepared by the Budget Division of the Department of Economic Affairs, Ministry of Finance, and not by the Department of Revenue. The Department of Revenue primarily administers Union direct and indirect taxes through the CBDT and CBIC.
Statement 2 is correct. Under Article 266(3), money cannot be appropriated out of the Consolidated Fund of India except in accordance with law and for constitutionally prescribed purposes. Article 114(3) further provides that no money can be withdrawn from the Consolidated Fund without an appropriation made by law.
Although expenditure charged on the Consolidated Fund is not voted upon by the Lok Sabha, it must still be included in the Appropriation Bill.
Statement 3 is incorrect. Under Article 266(2), the Public Account contains public money other than that credited to the Consolidated Fund—such as provident funds, small savings and deposits. The Government acts largely as a banker or trustee in respect of this money. Therefore, its withdrawal does not require parliamentary appropriation. Its accounts, however, remain subject to CAG audit and parliamentary financial scrutiny.
Additional fact: Under Article 112, the President causes the Annual Financial Statement to be laid before both Houses of Parliament. The Contingency Fund of India is placed at the disposal of the President under Article 267.