The Consolidated Fund Of India is one of three accounts in the government's Annual Financial Statement (AFS), one of the documents presented during the budget, the other two being the Contingency Fund of India, and the Public Fund. It is the most important account in the AFS.
The Consolidated Fund of India is the main account of the Government of India, where the government receives all tax revenues, proceeds from asset sales and dividends from public-sector undertakings. It is also the fund from where the government undertakes all its expenditure like public spending, social security programs and investments.
The Fund is established under Article 266 of the Indian Constitution. No funds can be utilised from the Fund without the authorisation of Parliament, which is government must receive every year during the passage of the budget through:
- Income to fund, which Parliament authorises by passing the Finance Bill
- Expenditure from the fund, which Parliament authorises by approving the demand for grants by different ministries
The Consolidated Fund of India also bears certain remunerations, which are not subject to a vote and must be paid. They include those of:
- The President of India
- The Speaker and Deputy Speaker of the Lok Sabha
- Vice-President of India and the Deputy Chairman of the Rajya Sabha
- Salaries and allowances of the Supreme Court judges
- Pensions to former High Court and Supreme Court judges
Just like the Centre, every state in India too have their own Consolidated Fund.
Updated On: 2020-01-28T15:31:32+05:30