2004 General Studies, all questions

UPSC Prelims 2004 · General Studies

Question 1: Economy and Social Development

With reference to Indian Public Finance, consider the following statements:

  1. 1.Disbursements from Public Accounts of India are subject to the Vote of Parliament.
  2. 2.The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.
  3. 3.Appropriations and disbursements under the Railway Budget are subject to the same form of Parliamentary control as other appropriations and disbursements.

Which of these statements given above are correct?

a1 and 2
b2 and 3
c1 and 3
d1, 2 and 3

AnswerThe answer is (b).

Money in the Public Account is paid out by the executive without a vote of Parliament, unlike the Consolidated Fund, so statement 1 fails. Articles 266 and 267 create a Consolidated Fund, a Public Account and a Contingency Fund for each State as well as for the Union. Railway spending needs Parliament's authority like any other expenditure; only the presentation of the Railway Budget was separate, by convention. Remember: Consolidated Fund spending needs an Appropriation Act, Public Account spending does not need a vote.

  • 1. Public Account disbursements are not subject to a parliamentary vote.
  • 2. Articles 266-267 provide the three funds for each State too.
  • 3. Railway appropriations follow the same parliamentary procedure; only the separate budget presentation is a convention.

How you could have got this

  1. If you were sure statement 1 is not correct, (a), (c) and (d) go: each of them includes 1.

    What you needed to know: Public Account disbursements are not subject to a parliamentary vote.

Only (b) is left. You didn’t need statements 2 or 3.

This follows an unofficial answer: UPSC has not published its key for this year, and if that answer is wrong, so is this path.

Which options go is worked out from UPSC’s key and the options, not by a model.

Why each option is right or wrong
  • (a) Includes statement 1, which is wrong: Public Account payments need no parliamentary vote.
  • (b) Correct: statements 2 and 3 hold, and statement 1 is wrong.
  • (c) Pairs the false statement 1 with 3 and drops the correct statement 2.
  • (d) Includes statement 1, which is false, so not all three can be correct.

Explanation: written by UPSC Grade, not by UPSC.

Practise this paper timedNext question

Source: UPSC, Civil Services (Preliminary) Examination 2004, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.