With reference to the Union Government, consider the following statements:
- 1.The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
- 2.No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
- 3.All the disbursements made from Public Account also need the authorization from the Parliament of India.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (c) 2 only
Only statement 2 is correct. Article 114(3) bars any withdrawal from the Consolidated Fund of India except under an appropriation made by a law passed by Parliament. The Budget is prepared by the Budget Division of the Department of Economic Affairs, not the Department of Revenue. Payments from the Public Account do not need Parliament's authorisation.
- ✗ 1. The Budget Division of the Department of Economic Affairs (Ministry of Finance) prepares the Union Budget and submits it to Parliament. The Department of Revenue deals with taxation and revenue collection, not Budget preparation.
- ✓ 2. Under Article 114(3), no money can be withdrawn from the Consolidated Fund except under an appropriation made by law. This means Parliament must pass an Appropriation Act. That Act covers both the grants voted by the Lok Sabha and the expenditure charged on the Consolidated Fund.
- ✗ 3. The Public Account (Article 266(2)) holds money the government receives as a banker or trustee, such as deposits and provident funds. These are not normal government receipts, so payments from the Public Account do not require Parliament's authorisation.
Remember · Consolidated Fund: withdrawal only under an Appropriation Act (Art. 114(3)). Public Account: no parliamentary authorisation needed for payments. The Budget is prepared by the Budget Division of the Department of Economic Affairs.
Sources
- Department of Economic Affairs – Budget Division ↗ “Budget Division is responsible for preparation of and submission to Parliament, Annual Budget as well as Supplementary and Excess Demands for Grants of the Central Government”
- Budget Manual, Budget Division, Department of Economic Affairs (Article 114) ↗ “no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law passed in accordance with the provisions of this article.”
- Government Accounts – A Brief (Ministry of Information and Broadcasting) ↗ “The receipts under Public Account do not constitute normal receipts of Government. Parliamentary authorization for payments from the Public Account is therefore not required”
Question: UPSC Civil Services (Preliminary) 2015, General Studies Paper I. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·
