Updated: May 20
The Consolidated Fund is the foundation stone of the system of Parliamentary supervision or control over finances in England. It is categorized into a three-way. As regards-
A)- Public revenue
B)- The authority for expending the revenue
C)- The securities for the appropriation of the Revenue
In our Constitution, the consolidated fund is a creation. The union as well as states have such funds.
All revenues, received by the Government of India. i.e taxes.
All loans raised by it by the releasing treasury bills.
Loans and ways and means advances and all money received by it in repayment of loans.
The other public moneys like deposits, compensation, and service fund are included in the Public Account of India.
AUTHORITY TO SPEND
Appropriation from out of the consolidated fund must be in accordance with law and for the purposes and in the manner provided in the Constitution. The consolidated fund is different from a contingency fund. In the annual Budget, the expenditure charged on the consolidated Fund is not subject to voting.
The Constitution itself provides various items of expenditure charged on the Consolidated Fund. Salary of Judges, Comptroller and Auditor General, Attorney General, etc.
The CAG sees to it that money which is granted is spent duly for the specified objects.