All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the:
Answer & explanation
Answer: (c) Consolidated Fund of India
Article 266(1) of the Constitution places all revenues received by the Government of India, along with the loans it raises and its recoveries of loans, in one fund: the Consolidated Fund of India. Taxes and other receipts for running the government therefore go there. The Public Account and the Contingency Fund serve different purposes.
- ✓ (c) All revenues received by the Union Government (tax and non-tax), its borrowings and its loan recoveries form the Consolidated Fund. Government expenditure is met from this fund, and no money can be withdrawn from it without Parliament's authorisation.
- ✗ (b) The Public Account holds money for which the government acts like a banker, such as provident funds, small savings and other deposits. This money does not belong to the government and has to be paid back to those who deposited it.
- ✗ (a) The Contingency Fund is an imprest placed at the President's disposal to meet urgent unforeseen expenditure. Amounts drawn from it are later recouped from the Consolidated Fund. It does not receive the government's revenues.
- ✗ (d) There is no separate 'Deposits and Advances Fund' among the government's accounts, which are the Consolidated Fund, the Contingency Fund and the Public Account. Deposits and advances form a section within the Public Account.
Remember · Government accounts have three parts. The Consolidated Fund (Art. 266(1)) takes all revenues, loans raised and loan recoveries. The Public Account (Art. 266(2)) takes all other public money. The Contingency Fund (Art. 267) meets urgent unforeseen expenditure.
Sources
- Key to Budget Documents 2007-08, Ministry of Finance (indiabudget.gov.in) ↗ “All revenues received by Government, loans raised by it, and also its receipts from recoveries of loans granted by it, form the Consolidated Fund. … Generally speaking, Public Account funds do not belong to Government and have to be paid back some time or the other to the persons and authorities who deposited them.”
Question: UPSC Civil Services (Preliminary) 2011, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
