INSIGHT UPSC QUIZ

GS Polity Miscellaneous
Q.

Given below are two statements, labelled as Assertion (a)  and Reason (R). Read these statements carefully and answer the question as per the codes given below:

Assertion (a) : Consolidated Fund of India is a fund in which all credit and debit take place.

Reason (R): It includes provident fund deposits, judicial deposits, savings bank deposits, departmental deposits, and remittances. 

Codes:

Explanation:

ANSWER: (C)

Consolidated Fund of India 

  • Statement 1 is correct.

Consolidated Fund of India is a fund in which all credit and debits take place. It includes all revenues received as receipts; All loans raised by the issue of T- bills, loans or ways and means of advances; All money received in repayment of loans. All the legally authorized payments on behalf of the Government of India are made out of this fund. Money out of this fund can be appropriated (issued or drawn) only in accordance with a parliamentary law.

Public Account of India 

  • Statement 2 is not correct.

Public money (other than those credited to the Consolidated Fund of India) received by or on behalf of the Government of India shall be credited to the Public Account of India. It includes provident fund deposits, judicial deposits, savings bank deposits, departmental deposits, remittances and so on. It is operated by executive action, that is, payments are made without parliamentary appropriation (like bank transactions).

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