The authorization for the withdrawal of funds from the Consolidated Fund of India must come from

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UPSC Prelims is a competitive examination conducted in India. This question is from the 2011 UPSC Prelims Indian Polity & Governance paper.

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This UPSC Prelims 2011 Indian Polity & Governance question has a medium difficulty level and is marked as an important question.

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Question

The authorization for the withdrawal of funds from the Consolidated Fund of India must come from

Accepted Answer

Correct Answer: B — The Parliament of IndiaStep-by-step Solution:The Consolidated Fund of India (Article 266) is the most important government account — all revenues received by the Government of India and all loans raised by the government are credited to it; all government expenditure is paid from it.The critical constitutional provision is Article 266(3): 'No moneys shall be withdrawn from the Consolidated Fund of India or the Consolidated Fund of a State except under appropriation made by law made by Parliament or the Legislature of the State, as the case may be.'This means: No money can be taken from the Consolidated Fund unless Parliament has passed an Appropriation Act authorising the withdrawal. The process is: (1) Government presents the Union Budget (including expenditure demands) to Parliament; (2) Parliament examines and votes on the demands for grants (the major appropriation); (3) Parliament passes the Appropriation Bill/Act; (4) Only after the Appropriation Act is passed can the government withdraw money from the Consolidated Fund for the authorised purposes.The President has no independent authority to authorise withdrawals — they give assent to Appropriation Bills (a constitutional formality). The Prime Minister and Finance Minister are executive officers who prepare and present the budget — but the authority to authorise withdrawal rests with Parliament through the law-making process.Key Concept: Three Government Accounts: (1) Consolidated Fund of India (Article 266) — all regular revenues and expenditures; withdrawal requires Parliamentary appropriation; (2) Contingency Fund of India (Article 267) — emergency fund of ₹500 crore (recently increased to ₹30,000 crore); President can draw from it without Parliamentary sanction (for genuine emergencies); must be replenished by Parliament; (3) Public Account of India (Article 266) — money held on behalf of others (provident fund, judicial deposits, savings certificates); executive action sufficient. Appropriation Act vs Finance Act: Finance Act — changes in tax laws (authorises revenue collection); Appropriation Act — authorises withdrawal from Consolidated Fund (authorises expenditure). Vote on Account: Interim authorisation for government expenditure for a few months when full budget is delayed.

The authorization for the withdrawal of funds from the Consolidated Fund of India must come from

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The authorization for the withdrawal of funds from the Consolidated Fund of India must come from

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More Questions from National Income – GDP, GNP, NNP & Measurement

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