All revenues received by the Union Government by way of taxes and other receipts for the conduct of

Q: What is UPSC Prelims?

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

Q: How can I prepare for UPSC Prelims Indian Polity & Governance?

To prepare for UPSC Prelims Indian Polity & Governance, practice previous year questions (PYQs), understand concepts thoroughly, and solve mock tests regularly. This 2011 question covers National Income – GDP, GNP, NNP & Measurement topic.

Q: What is the difficulty level of this question?

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

Q: Where can I find more UPSC Prelims previous year questions?

You can find more UPSC Prelims previous year questions on AspirantMitraa. Browse by subject, topic, year, and difficulty level to practice effectively.

Question

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the

Accepted Answer

Correct Answer: C — Consolidated Fund of IndiaStep-by-step Solution:Under Article 266(1) of the Constitution: 'All revenues received by the Government of India, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled the Consolidated Fund of India.'The Consolidated Fund of India includes: All tax revenues — income tax, customs duty, GST (central share), corporation tax, excise duty, etc.; All non-tax revenues — dividends from PSUs, RBI surplus, fees, fines, user charges; All borrowings by the central government — market borrowings, small savings, provident funds (government's share), external aid; All loan repayments received by government. ALL these flow into the Consolidated Fund and cannot be withdrawn without Parliamentary authorisation through an Appropriation Act.Why other options are wrong:Contingency Fund (Article 267): A small emergency fund (₹30,000 crore, recently enhanced) held at the disposal of the President for unforeseen urgent expenditure. NOT where regular revenues go.Public Account (Article 266(2)): Receives money held in trust — provident fund deposits (government employees), judicial deposits, small savings (Post Office savings), stamps, etc. Government acts as a banker; these are not 'revenues' of the government.Deposits and Advances Fund: A part of the Public Account — not a separate constitutional entity for main revenue receipts.Key Concept: Controller and Auditor General (CAG): Article 148 — independent constitutional authority; audits all three funds (Consolidated, Contingency, Public Account); submits reports to Parliament through the President; PAC (Public Accounts Committee) examines CAG reports; CAG is 'guardian of the public purse.' The CAG's audit reports on Consolidated Fund expenditure are how Parliament exercises financial control over the executive — coal scam CAG report, 2G spectrum CAG report, Commonwealth Games — all major accountability mechanisms that led to political consequences.

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the

Master UPSC Prelims with Our Test Series

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

Frequently Asked Questions

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the

Master UPSC Prelims with Our Test Series

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

Frequently Asked Questions