The Public Account was constituted by Article 266(2)of the Indian Constitution. It deals with the transactions that are related to debt and not covered under the Consolidated Fund of India.

The transactions under Debt, Deposits and Advances in this part are those in respect of which Government incurs a liability to repay the money received or has a claim to recover the amounts paid. The receipts under Public Account do not constitute normal receipts of Government. Parliamentary authorization for payments from the Public Account is therefore not required.