Union Budget and Government Finance
Question
With reference to the Union Government, consider the following statements:
Which of the statements given above is/are correct?
- 1.
The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament.
- 2.
No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India.
- 3.
All the disbursements made from Public Account also need the authorization from the Parliament of India.
Options
1 and 2 only
2 and 3 only
2 only
1, 2 and 3
Explanation
Statement 1 is incorrect—the Department of Economic Affairs (not Department of Revenue) is primarily responsible for budget preparation. The Department of Revenue handles tax collection and related matters. Statement 2 is correct—the Consolidated Fund of India is the main government fund, and no amount can be withdrawn from it without parliamentary authorization, as mandated by Article 267 of the Constitution. Statement 3 is incorrect—the Public Account contains funds that are received by the government for specific purposes (like provident fund deposits, security deposits, etc.). These are held in trust and disbursements from the Public Account do not require parliamentary authorization for each individual transaction; they are managed according to established procedures. Only statement 2 is correct. > Consolidated Fund withdrawals require parliament approval; Public Account disbursements do not. Answer: c.
Question details
Year
2015
Paper
GS Paper 1
Question
Q60
Subject
Polity
Sub-topic
Financial Administration and Budget Process
Type
Statement-based
Difficulty
Medium
Nature
Static
Source hint
NCERT Polity - Financial Administration
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