Growth, GDP, IIP, Results, Economy, Reforms, Investment, Invest, Investors, returns, negative

Public Account

Finance Minister Nirmala Sitharaman and MoS Finance Anurag Thakur (right) at a meeting in New Delhi on Thursday

EPFO

table

Joining a corporate NPS plan makes sense for those with surplus money

<div>
	Article 266 of the Constitution defines the Public Account as being those funds that are received on behalf of the Government of India.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Money held by the government in a trust &mdash; such as in the case of Provident Funds, Small Savings collections, income of government set apart for expenditure on specific objects like road development, primary education, reserve/special Funds, etc &mdash; are kept in the Public Account. Public Account funds do not belong to the government and have to be finally paid back to the persons and authorities that deposited them.&nbsp;</div>
<div>
	&nbsp;</div>
<div>
	Parliamentary authorisation for such payments is not required. However, when money is withdrawn from the Consolidated Fund with the approval of Parliament and kept in the Public Account for expenditure for a specific purpose, it is submitted for a vote in Parliament.</div>
<div>
	&nbsp;</div>
<div>
	There are five major heads of accounts under the Public Account &mdash; (i) Small Savings, Provident Fund and Other Accounts (ii) Reserve Funds (iii) Deposits and Advances (iv) Suspense and Miscellaneous and (v) Remittances.</div>
<div>
	&nbsp;</div>

RELATED BUDGET TERMS

Learn what is meant by Public Account, Public Account definition and more Public Account news here at Business Standard.

What is Public Account, Public Account Meaning, Public Account definition, Budget News

What is Public Account

<div>
	&nbsp;</div>
<div>
	Among the several government accounts, the Consolidated Fund of India is the most crucial. Constituted under Article 266(1) of the Indian Constitution, the Consolidated Fund of India is the account of the revenue the Government of India receives &mdash; via income tax, Customs, central excise and the non-tax revenue &mdash; and the expenses it makes, excluding exceptional items.</div>
<div>
	&nbsp;</div>
<div>
	Any money raised by the government, including loans through public notifications, treasury bills, and borrowings from foreign governments or international institutions, is always credited to this fund. Likewise, whatever money the Indian government spends &mdash; government expenditure &mdash; is incurred from this account. The government cannot withdraw any fund from this account without the approval of Parliament. Essentially, a sum of Rs 500 crore from Consolidated fund of India is transferred to the Contingency Fund of India for dealing with any emergency situation. However, if the contingency fund is not used by the government in a given financial year, there is no requirement to add more to it.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Disbursement charged on Consolidated Fund of India</strong></div>
<div>
	&nbsp;</div>
<div>
	Payment of interests, loans and advances to state governments, internal debt of the central government, and grants-in-aid to state governments account for the bulk of expenditure.</div>
<div>
	&nbsp;</div>

Learn what is meant by Consolidated Fund of India, its Definition and more budget related news here at Business Standard.

What is Consolidated Fund of India, Budget News, Consolidated Fund of India Definition

Consolidated Fund of India

<div>
	Government revenue refers to all the income of the government from taxes and non-tax sources. These funds are used for government expenditure. Government revenues and spending are an important part of fiscal policy of the government.</div>
<div>
	&nbsp;</div>
<div>
	Revenue refers to all the receipts of the government from taxes, custom duties, revenue from state-owned enterprises, capital revenues and foreign aid.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Revenue is generated from mainly two types of sources:</strong></div>
<div>
	&nbsp;</div>
<div>
	<strong>Tax revenue</strong>: Taxes on incomes of individuals and corporations and also on the goods and services produced.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Non-tax revenue:</strong> Dividends from state-run companies, central bank revenue and capital receipts in the form of external loans and debts from international financial institutions.</div>
<div>
	&nbsp;</div>
<div>
	India&rsquo;s total revenue in the April-November quarter of FY20 increased 12.9 per cent to Rs 10.12 trillion. It was 8.97 trillion in the same period in FY19.</div>
<div>
	&nbsp;</div>
<div>
	Government revenues averaged Rs 3.09 trillion from 1997 until 2019, touching an all-time high of Rs 16.66 trillion in March 2019.</div>
<div>
	&nbsp;</div>

Learn What is Revenue, Revenue Definition, Revenue News and more here at Business Standard.

Public Account

What is Public Account

Latest Updates on Public Account

Why a growth rate falling below 5% is a clear and present danger for India

Finance ministry asks EPFO to reduce annual fund payout of 8.65%: Report

Joining a corporate NPS plan makes sense for those with surplus money