With reference to Public Account of India consider the following statements 1 All the loans raised b...........

Indian Polity Parliamentary Procedures

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With reference to Public Account of India, consider the following statements:

1. All the loans raised by the government by the issue of treasury bills form a part of Public account of India.

2. Payment from this account can be made without parliamentary appropriation.

Which of the statements give above is/are correct?

1 only

2 only

Both 1 and 2

Neither 1 and 2

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Explanation:

• Statement 1 is not correct: Consolidated Fund of India is a fund to which all receipts are credited and all payments are debited. In other words, (a) all revenues received by the Government of India; (b) all loans raised by the Government by the issue of treasury bills, loans or ways and means of advances; and (c) all money received by the government in repayment of loans forms the Consolidated Fund of India.

• Statement 2 is correct: All other public money (other than those which are credited to the Consolidated Fund of India) received by or on behalf of the Government of India shall be credited to the Public Account of India. This includes provident fund deposits, judicial deposits, savings bank deposits, departmental deposits, remittances and so on. This account is operated by executive action, that is, the payments from this account can by made without parliamentary appropriation. Such payments are mostly in the nature of banking transactions.