UPSC Prelims 2015 · Question 60 of 98
UPSC Prelims 2015 question on Union Budget Consolidated Fund
- ExamUPSC CSE
- Year2015
- PaperGeneral Studies Paper I
- SubjectIndian Economy
- TopicPublic Finance
- DifficultyMedium
- TypeStatement
With reference to the Union Government, consider the following statements:
1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
3. All the disbursements made from Public Account also need the authorization from the Parliament of India.
Which of the statements given above is/are correct?
Show answer
Answer: C. 2 only
Verdict
The answer is 2 only. Withdrawals from the Consolidated Fund need parliamentary authorisation, but the Budget is prepared elsewhere and the Public Account does not need appropriation.
Analysis
Statement 2 is CORRECT. No money can be withdrawn from the Consolidated Fund of India except under appropriation made by law passed by Parliament, under Article 266. Statement 1 is INCORRECT. The Union Budget is prepared by the Department of Economic Affairs, not the Department of Revenue, which administers direct and indirect tax policy. Statement 3 is INCORRECT. The Public Account holds provident fund deposits, judicial deposits, savings deposits and remittances, and is operated by executive action, so payments from it are made without parliamentary appropriation because they are essentially banking transactions.
Source
M. Laxmikanth, Indian Polity, page 289.
How to crack it
Hold the three funds apart by asking whose money it is. The Consolidated Fund is the government's own money and needs parliamentary appropriation, the Contingency Fund is an imprest with the President for unforeseen expenditure and needs subsequent approval, and the Public Account is money the government holds on behalf of others and therefore needs none. Ownership explains the level of parliamentary control in every case, which is far more durable than a memorised rule.