Choose the incorrect statement........

Indian Polity Indian Parliament

Choose the incorrect statement

The contingency fund of India is held by Prime Minister’s office on behalf of the President to meet contingency needs like natural disasters and calamities.

The Parliament can reduce or abolish it and not increase it.

The budget shall distinguish expenditure on revenue account from other expenditure.

The Parliament can make laws on any subject of State list for Delhi and Puducherry.

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Explanation:

1st statement is incorrect.
Under Article 266 (1) of the Constitution of India, all revenues ( example tax revenue from personal income tax, corporate income tax, customs and excise duties as well as non-tax revenue such as licence fees, dividends and profits from public sector undertakings etc. ) received by the Union government as well as all loans raised by issue of treasury bills, internal and external loans and all moneys received by the Union Government in repayment of loans shall form a consolidated fund entitled the 'Consolidated Fund of India' for the Union Government.
Similarly, under Article 266 (1) of the Constitution of India, a Consolidated Fund Of State (a separate fund for each state) has been established where all revenues (both tax revenues such as Sales tax/VAT, stamp duty etc..and non-tax revenues such as user charges levied by State governments) received by the State government as well as all loans raised by issue of treasury bills, internal and external loans and all moneys received by the State Government in repayment of loans shall form part of the fund.
The Comptroller and Auditor General of India audits these Funds and reports to the Union/State legislatures when proper accounting procedures have not been followed.