Arpita Mukherjee Has More Accounts Than Govt of India

***Arpita Mukherjee Has More Accounts Than Govt of India***

We have mentioned the term Annual Financial Statement(as per Article 112) many time. Let's discuss what does it contain.

****It contains the estimated Receipts & Expenditures for upcoming year 2022-23,present year 2021-2022(as budget is submitted before the completion of FY) & actuals(actual receipts & expenditures) of last year 2020-21. Hence Revenue & Capital Budgets(already discussed) are parts of this statement.

****Govt has three accounts 1)Consolidated Fund of India 2)Contingency Fund of India & 3)Public Account of India.

1)Consolidated Fund of India(Article 266): All govt's receipts(e.g. direct/indirect taxes,loans received,proceeds of bonds & securities etc) & expenditures(e.g. developmental expenditure i.e. schemes etc,salaries & pensions etc) are counted in this account.  Voted expenditures need parliamentary approval & charged expenditures don't need parliamentary approval. Voted expenditures are put forwarded in 'Demand For Grant' for parliamentary voting. 

***Home work: See the examples of Voted & Charged Expenditures from Internet.

2)Contingency Fund of India(Article 267): It is for disasters and related unforeseen expenditures. Presently the corpus is Rs 30,000 crore(through Finance Bill). President releases fund on request of the union cabinet,which later gets an approval from parliament(mandatory). This fund is replenished by drawing an equivalent amount from Consolidated Fund.

3)Public Account of India(as per Article 266-same article as consolidated fund of India): All other money received by Govt of India(except Consolidated Fund) e.g. Public Provident Fund,Small Savings instruments,amount received by selling G-Secs etc goes to this account. These received payments are liabilities e.g. Govt has to pay those back. Hence parliamentary approval is not required.

(TO BE CONTINUED.Lots of things to say.)

By,Hemen Sarma

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