UPSC Prelims 2011 · GS Paper I

Question 37: Economy and Social Development

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the

aContingency Fund of India

bPublic Account

cConsolidated Fund of India

dDeposits and Advances Fund

AnswerThe answer is (c).

Article 266(1) says that all revenues received by the Union Government, along with loans raised and the repayments of loans, are credited to the Consolidated Fund of India. Spending from it needs Parliament's appropriation. The Public Account (Article 266(2)) holds money received as a banker, such as provident funds and small savings, and the Contingency Fund (Article 267) is a corpus for unforeseen expenditure, kept at the President's disposal.

Why each option is right or wrong

(a) The Contingency Fund is only for urgent unforeseen expenditure.
(b) The Public Account holds money received in trust or as a banker, not general revenues.
(c) Right: all revenues, loans and receipts credit the Consolidated Fund.
(d) Deposits and Advances are part of the Public Account, not the main revenue fund.

Explanation: written by UPSC Grade, not by UPSC.

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Source: UPSC, Civil Services (Preliminary) Examination 2011, General Studies Paper I, Series A. The paper on upsc.gov.in.