There are three different types of budge in India. Indian government budgets are thought to fall into three groups: surplus, balanced, and deficit. According to estimations, India's government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union BudgeRead more
There are three different types of budge in India.
Indian government budgets are thought to fall into three groups: surplus, balanced, and deficit.
According to estimations, India’s government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link.
If the anticipated government receipts equal the anticipated government expenditure in a fiscal year, this is referred to as the government’s balanced budget. A balanced budget will not contribute to financial stability if the economy is experiencing deflation or economic depression.
In India, the Comptroller and Auditor General of India and the Public Accounts Committee are the guardians of public funds. The Indian Constitution's Articles 266 and 267 deal with the government of India's funds. The Comptroller and Auditor General of India and the Public Accounts Committee are resRead more
In India, the Comptroller and Auditor General of India and the Public Accounts Committee are the guardians of public funds.
The Indian Constitution’s Articles 266 and 267 deal with the government of India’s funds.
The Comptroller and Auditor General of India and the Public Accounts Committee are responsible for safeguarding public funds in India.
Articles 266 and 267 of the Indian Constitution deal with the government of India’s funds.
According to estimates, India's government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link. If the anticipated government receipts equal the anticipated government expenditure in a fiscal yRead more
According to estimates, India’s government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link.
If the anticipated government receipts equal the anticipated government expenditure in a fiscal year, this is referred to as the government’s balanced budget.
A balanced budget will not contribute to financial stability if the economy is experiencing deflation or economic depression.
Types of budget In India
According to the government, there are three types of budgets:
Balanced budget.
Surplus budget.
Deficit budget.
1. Balanced budget
When a government’s estimated revenues and anticipated expenditures are equal, the budget is said to be balanced. Specifically, government receipts and expenditures.
That’s because the government raises money through taxes and other ways. In the past, a balanced budget was thought to be a good way to keep the government from spending too much money.
The government has to be fiscally responsible and keep its spending within the limits of what it can afford.
Classical economists such as Adam Smith popularized the concept of a balanced budget.
They regarded a balanced budget as being neutral in terms of its effect on the functioning of the economy and thus the best.
However, contemporary economists believe that a balanced budget policy may not always be optimal for the economy.
For example, during a depression, there is less economic activity, which leads to jobless people being out of work
The government may intervene to save the populace. It has the authority to borrow funds and spend them on public works projects.
This will lead to more jobs, more demand for goods and services, and more investment.
2. Surplus budget
When estimated government receipts exceed estimated government expenditures, a surplus budget exists.
When the government spends less than it receives, the budget is said to be in surplus.
Government expenditure projections exceed anticipated government expenditures.
A surplus budget is used to either reduce the public debt or increase the government’s savings.
A surplus budget may be advantageous during times of inflation. While there is more work during times of inflation, there is also a tendency for prices to rise quickly.
This must be checked, particularly for those with a more or less fixed income. This inflationary imbalance can be closed by lowering the economy’s effective demand level.
It is a situation that can be corrected by increasing taxes. This would increase the government’s revenue but erode the people’s purchasing power.
As a result, aggregate demand will be reduced. This inflation discrepancy can be closed by reducing government spending.
The surplus budget should not be used for purposes other than to close the inflationary gap, as it may result in increased unemployment and low economic output.
3. Deficit budget
when the government’s revenue is expected to be less than its expenditure. The majority of budgets in modern economies are of this type. That the anticipated government expenditure exceeds the estimated government receipts.
A deficit budget increases the government’s liability or depletes its reserves.
A deficit budget may be advantageous during times of depression when economic activity is at a low level. It results in job losses, business closures, and even bankruptcy, as well as inflation.
Through deficit financing, the government can borrow money and increase expenditure on public works.
This will result in an increase in employment and total effective demand for goods and services, which will stimulate investment. As a result, a deficit budget is helpful in eradicating depression and unemployment.
Any country in the world strives to avoid a deficit budget, despite the fact that achieving a surplus budget is difficult, which is why countries strive for a balanced budget in order to avoid inflation, unemployment, or other negative consequences.
The CAG of India, also known as the "Guardian of the Public Purse," is tasked with inspecting and auditing all expenditures by the Central and State governments, as well as those organizations or bodies that receive significant funding from the government. CAG Responsibilities There are a lot of accRead more
The CAG of India, also known as the “Guardian of the Public Purse,” is tasked with inspecting and auditing all expenditures by the Central and State governments, as well as those organizations or bodies that receive significant funding from the government.
CAG Responsibilities
There are a lot of accounts he looks at. He looks at all spending from the Consolidated Fund of India, the Consolidated Funds of each state and UT with a legislature, and the funds of the Union Territories.
He audits all expenditure from India’s contingency fund and public account, as well as from each state’s contingency fund and public account.
He audits all commercial, manufacturing, profit and loss, balance sheets, and separate subsidiary accounts maintained by any department of the central or state governments.
He audits all receipts and expenditures of bodies and authorities that receive substantial funding from central or state revenues, government corporations, other corporations, and bodies as required by applicable laws.
The RBI is the government's banker who is solely in charge of All three fund types, namely: Consolidated Fund the public account and the Contingency fund. Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India. Reserve Bank of IndRead more
The RBI is the government’s banker who is solely in charge of All three fund types, namely:
Consolidated Fund
the public account and
the Contingency fund.
Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India.
Reserve Bank of India in Nagpur is where all of the funds for the state and government are put together at the end.
The Indian government and each state government in India each have their own consolidated funds.
Article 266 (1) of the Indian Constitution requires that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), excluding exceptional items, be included in the consolidated fund.
The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.
The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.
Charged expenses aren’t voted on by Parliament, which means they can be talked about but not voted on. The other type of expenses must be voted on.
the consolidated fund was divided into "revenue" and "capital" divisions. All other funds received by the government or on its behalf are credited to the public account. The Contingency Fund enables the government to meet unexpected expenditures that cannot wait for Parliamentary approval. What is tRead more
the consolidated fund was divided into “revenue” and “capital” divisions.
All other funds received by the government or on its behalf are credited to the public account.
The Contingency Fund enables the government to meet unexpected expenditures that cannot wait for Parliamentary approval.
What is the difference between the Contingency Fund of India and the Consolidated Fund of
The Indian Constitution specifies the manner in which the government’s accounts must be kept. The Consolidated Fund of India, the Contingency Fund, and the Public Account are some of the things that the Constitution says are set up by the law.
All revenues collected, loans raised, and funds received by the government in repayment of loans are credited to the Consolidated Fund of India, from which all government expenditures are incurred.
Only funds appropriated by Parliament may be spent from this fund. Additionally, the consolidated fund was divided into “revenue” and “capital” divisions.
All other funds received by the government or on its behalf are credited to the public account.
The Contingency Fund enables the government to meet unexpected expenditures that cannot wait for Parliamentary approval.
To deal with these situations, the executive gets money from the Contingency Fund, which is then reported to Parliament for repayment from the Consolidated Fund of India, so that the money can be used to meet the needs.
One of the most distinguishing characteristics of the Indian government’s accounts is the meticulousness with which financial transactions are recorded in the account books.
All transactions are classified functionally into six tiers, with major heads representing the government’s broad functions at the top and an object head representing the activity at the bottom.
At the intermediate levels, sub-functions, programs, schemes, and sub-schemes are represented. Receipts and payments both fall under the functional classification.
Due to the country’s plan-based economic model, government expenditure is classified as “plan” and “non-plan.” As the name implies, plan expenditure is directly related to the schemes and programs outlined in the plans.
Non-plan expenditures include costs associated with establishment and maintenance.
Besides that, there’s a big difference between spending that needs to be approved by the legislature and spending that is charged to the Consolidated Fund of India.
Because the budget is annual, the accounts must conform to it. Accounts are kept on a cash basis. Only actual receipts and payments made during the year are kept track of.
Which one of the following expenditures is not charged on the consolidated fund of India? Options Salary and allowances of the President of India Salary and allowances of the Vice President of India Salary and allowances of the Justice of the Supreme Court of India Salary and allowances of the speakRead more
Which one of the following expenditures is not charged on the consolidated fund of India?
Options
Salary and allowances of the President of India
Salary and allowances of the Vice President of India
Salary and allowances of the Justice of the Supreme Court of India
Salary and allowances of the speaker of the Lok Sabhad
The Right Answer is D Salary and allowances of the speakers of the Lok Sabha are not charged on the consolidated fund of India.
“Consolidated Fund” or “consolidated revenue fund” is the phrase used to refer to the government’s primary bank account in a number of Commonwealth of Nations member countries.
Unless Parliament expressly provides otherwise by law, every tax dollar is put into the fund.
Any funds received by the government that is not taxed and are not intended to be retained by the receiving agency (for example, fines) are classified as Consolidated Fund Extra Receipts (CFER). These are to be deposited immediately into the Consolidated Fund.
The Indian government and each state government in India each have their own consolidated funds. Article 266(1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in theRead more
The Indian government and each state government in India each have their own consolidated funds.
Article 266(1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in the consolidated fund.
The Comptroller and Auditor General of India audit these funds and report on their management to the appropriate legislatures.
The budget is divided into two categories of expenditure: those ‘charged’ against the Consolidated Fund of India and those made from the Consolidated Fund of India.
The charged expenditure is non-votable by Parliament, meaning it can be discussed but not voted on, whereas the other type must be voted on.
The list of the charged expenditure is:
Emoluments and allowances of the President and other expenditures relating to his office.
Salaries and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha.
Salaries, allowances, and pensions of the judges of the Supreme Court.
Pensions of the judges of high courts.
Salary, allowances, and pension of the Comptroller and Auditor General of India
Salaries, allowances, and pension of the chairman and members of the Union Public Service Commission.
Administrative expenses of the Supreme Court, the office of the Comptroller and Auditor General of India, and the Union Public Service Commission including the salaries, allowances, and pensions of the persons serving in these offices.
The debt charges for which the Government of India is liable, include interest, sinking fund charges and redemption charges, and other expenditures relating to the raising of loans and the service and redemption of debt.
Any sum required to satisfy any judgment, decree, or award of any court or arbitral tribunal.
Any other expenditure declared by the Parliament to be so charged.
The government deposits its monetary reserves with the Reserve Bank. The Reserve Bank may also function as a banker and handle debt management for state governments by agreement. Currently, save for Sikkim, the Reserve Bank operates as a banker to all state governments in India (including the UnionRead more
The government deposits its monetary reserves with the Reserve Bank. The Reserve Bank may also function as a banker and handle debt management for state governments by agreement.
Currently, save for Sikkim, the Reserve Bank operates as a banker to all state governments in India (including the Union Territory of Puducherry). Sikkim has a limited arrangement in place to handle its public debt.
Who is the cash Manager of Govt of India?
The Reserve Bank of India has performed the typical central banking duty of managing the government’s banking transactions since its foundation.
According to the Reserve Bank of India Act, 1934, the Central Government entrusts the Reserve Bank with all money, remittance, exchange, and banking operations in India, as well as the administration of the country’s public debt.
Additionally, the government deposits its monetary reserves with the Reserve Bank. The Reserve Bank may also function as a banker and handle debt management for state governments by agreement.
Currently, save for Sikkim, the Reserve Bank operates as a banker to all state governments in India (including the Union Territory of Puducherry). Sikkim has a limited arrangement in place to handle its public debt.
The Reserve Bank has well-defined responsibilities and provides governments with a variety of banking services.
The Reserve Bank acts as a banker to the government, receiving and disbursing funds on behalf of the various government agencies.
Additionally, the Reserve Bank is responsible for floating and managing loans on behalf of governments. It provides governments with Ways and Means Advances (a short-term interest-bearing loan) to address temporary discrepancies in their receipts and payments.
Additionally, similar to a portfolio manager, it arranges for the investment of governments’ surplus cash balances. The Reserve Bank advises the government on monetary and banking affairs when called upon to do so.
The Central Government and state governments have the authority to enact rules governing the receipt, custody, and disbursement of funds from the consolidated fund, contingency fund, and public account.
These restrictions are legally binding on the Reserve Bank, as the Reserve Bank holds accounts for these funds.
Governments’ banking functions are carried out by the Public Accounts Departments at Reserve Bank offices and branches. Due to the Reserve Bank’s 29 offices and sub-offices, it appoints other banks to act as its agents in doing banking business on behalf of governments.
The Reserve Bank compensates banks for carrying out government business on its behalf.
Currently, the Internal Debt Management Department at the Central Office and the Public Debt Office at Reserve Bank offices and branches manage public debt, including the flotation of new loans.
The final compilation of government accounts for the Centre and States is carried out in the Reserve Bank of India’s Nagpur office, which features a Central Accounts Section.
The Indian government and each state government in India each have their own consolidated funds. For instance, Article 266 (1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, beRead more
The Indian government and each state government in India each have their own consolidated funds.
For instance, Article 266 (1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in the consolidated fund.
The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.
The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.
How many types of budget are there in India
PSAmaster
There are three different types of budge in India. Indian government budgets are thought to fall into three groups: surplus, balanced, and deficit. According to estimations, India's government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union BudgeRead more
There are three different types of budge in India.
Indian government budgets are thought to fall into three groups: surplus, balanced, and deficit.
According to estimations, India’s government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link.
If the anticipated government receipts equal the anticipated government expenditure in a fiscal year, this is referred to as the government’s balanced budget. A balanced budget will not contribute to financial stability if the economy is experiencing deflation or economic depression.
source
See lessWho is the guardian of public funds in India
PSAmaster
In India, the Comptroller and Auditor General of India and the Public Accounts Committee are the guardians of public funds. The Indian Constitution's Articles 266 and 267 deal with the government of India's funds. The Comptroller and Auditor General of India and the Public Accounts Committee are resRead more
In India, the Comptroller and Auditor General of India and the Public Accounts Committee are the guardians of public funds.
The Indian Constitution’s Articles 266 and 267 deal with the government of India’s funds.
The Comptroller and Auditor General of India and the Public Accounts Committee are responsible for safeguarding public funds in India.
Articles 266 and 267 of the Indian Constitution deal with the government of India’s funds.
See lessHow many types of budget are there in India
PSAmaster
According to estimates, India's government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link. If the anticipated government receipts equal the anticipated government expenditure in a fiscal yRead more
According to estimates, India’s government budgets fall into three categories: surplus budgets, balanced budgets, and deficit budgets. The Union Budget 2021-22 Summary can be found at the provided link.
If the anticipated government receipts equal the anticipated government expenditure in a fiscal year, this is referred to as the government’s balanced budget.
A balanced budget will not contribute to financial stability if the economy is experiencing deflation or economic depression.
Types of budget In India
According to the government, there are three types of budgets:
1. Balanced budget
When a government’s estimated revenues and anticipated expenditures are equal, the budget is said to be balanced. Specifically, government receipts and expenditures.
That’s because the government raises money through taxes and other ways. In the past, a balanced budget was thought to be a good way to keep the government from spending too much money.
The government has to be fiscally responsible and keep its spending within the limits of what it can afford.
Classical economists such as Adam Smith popularized the concept of a balanced budget.
They regarded a balanced budget as being neutral in terms of its effect on the functioning of the economy and thus the best.
However, contemporary economists believe that a balanced budget policy may not always be optimal for the economy.
For example, during a depression, there is less economic activity, which leads to jobless people being out of work
The government may intervene to save the populace. It has the authority to borrow funds and spend them on public works projects.
This will lead to more jobs, more demand for goods and services, and more investment.
2. Surplus budget
When estimated government receipts exceed estimated government expenditures, a surplus budget exists.
When the government spends less than it receives, the budget is said to be in surplus.
Government expenditure projections exceed anticipated government expenditures.
A surplus budget is used to either reduce the public debt or increase the government’s savings.
A surplus budget may be advantageous during times of inflation. While there is more work during times of inflation, there is also a tendency for prices to rise quickly.
This must be checked, particularly for those with a more or less fixed income. This inflationary imbalance can be closed by lowering the economy’s effective demand level.
It is a situation that can be corrected by increasing taxes. This would increase the government’s revenue but erode the people’s purchasing power.
As a result, aggregate demand will be reduced. This inflation discrepancy can be closed by reducing government spending.
The surplus budget should not be used for purposes other than to close the inflationary gap, as it may result in increased unemployment and low economic output.
3. Deficit budget
when the government’s revenue is expected to be less than its expenditure. The majority of budgets in modern economies are of this type. That the anticipated government expenditure exceeds the estimated government receipts.
A deficit budget increases the government’s liability or depletes its reserves.
A deficit budget may be advantageous during times of depression when economic activity is at a low level. It results in job losses, business closures, and even bankruptcy, as well as inflation.
Through deficit financing, the government can borrow money and increase expenditure on public works.
This will result in an increase in employment and total effective demand for goods and services, which will stimulate investment. As a result, a deficit budget is helpful in eradicating depression and unemployment.
Any country in the world strives to avoid a deficit budget, despite the fact that achieving a surplus budget is difficult, which is why countries strive for a balanced budget in order to avoid inflation, unemployment, or other negative consequences.
See lessWho is the guardian of public funds in India
PSAmaster
The CAG of India, also known as the "Guardian of the Public Purse," is tasked with inspecting and auditing all expenditures by the Central and State governments, as well as those organizations or bodies that receive significant funding from the government. CAG Responsibilities There are a lot of accRead more
The CAG of India, also known as the “Guardian of the Public Purse,” is tasked with inspecting and auditing all expenditures by the Central and State governments, as well as those organizations or bodies that receive significant funding from the government.
CAG Responsibilities
There are a lot of accounts he looks at. He looks at all spending from the Consolidated Fund of India, the Consolidated Funds of each state and UT with a legislature, and the funds of the Union Territories.
He audits all expenditure from India’s contingency fund and public account, as well as from each state’s contingency fund and public account.
He audits all commercial, manufacturing, profit and loss, balance sheets, and separate subsidiary accounts maintained by any department of the central or state governments.
He audits all receipts and expenditures of bodies and authorities that receive substantial funding from central or state revenues, government corporations, other corporations, and bodies as required by applicable laws.
See lessIs the consolidated fund of India kept in State Bank of India
PSAmaster
The RBI is the government's banker who is solely in charge of All three fund types, namely: Consolidated Fund the public account and the Contingency fund. Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India. Reserve Bank of IndRead more
The RBI is the government’s banker who is solely in charge of All three fund types, namely:
Naturally, for banking operations, it employs banking agencies and pays them fees. It operates in 29 cities throughout India.
Reserve Bank of India in Nagpur is where all of the funds for the state and government are put together at the end.
The Indian government and each state government in India each have their own consolidated funds.
Article 266 (1) of the Indian Constitution requires that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), excluding exceptional items, be included in the consolidated fund.
The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.
The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.
Charged expenses aren’t voted on by Parliament, which means they can be talked about but not voted on. The other type of expenses must be voted on.
See lessWhat is the difference between Contingency Fund of India and Consolidated Fund of
PSAmaster
the consolidated fund was divided into "revenue" and "capital" divisions. All other funds received by the government or on its behalf are credited to the public account. The Contingency Fund enables the government to meet unexpected expenditures that cannot wait for Parliamentary approval. What is tRead more
the consolidated fund was divided into “revenue” and “capital” divisions.
All other funds received by the government or on its behalf are credited to the public account.
The Contingency Fund enables the government to meet unexpected expenditures that cannot wait for Parliamentary approval.
What is the difference between the Contingency Fund of India and the Consolidated Fund of
The Indian Constitution specifies the manner in which the government’s accounts must be kept. The Consolidated Fund of India, the Contingency Fund, and the Public Account are some of the things that the Constitution says are set up by the law.
All revenues collected, loans raised, and funds received by the government in repayment of loans are credited to the Consolidated Fund of India, from which all government expenditures are incurred.
Only funds appropriated by Parliament may be spent from this fund. Additionally, the consolidated fund was divided into “revenue” and “capital” divisions.
All other funds received by the government or on its behalf are credited to the public account.
The Contingency Fund enables the government to meet unexpected expenditures that cannot wait for Parliamentary approval.
To deal with these situations, the executive gets money from the Contingency Fund, which is then reported to Parliament for repayment from the Consolidated Fund of India, so that the money can be used to meet the needs.
One of the most distinguishing characteristics of the Indian government’s accounts is the meticulousness with which financial transactions are recorded in the account books.
All transactions are classified functionally into six tiers, with major heads representing the government’s broad functions at the top and an object head representing the activity at the bottom.
At the intermediate levels, sub-functions, programs, schemes, and sub-schemes are represented. Receipts and payments both fall under the functional classification.
Due to the country’s plan-based economic model, government expenditure is classified as “plan” and “non-plan.” As the name implies, plan expenditure is directly related to the schemes and programs outlined in the plans.
Non-plan expenditures include costs associated with establishment and maintenance.
Besides that, there’s a big difference between spending that needs to be approved by the legislature and spending that is charged to the Consolidated Fund of India.
Because the budget is annual, the accounts must conform to it. Accounts are kept on a cash basis. Only actual receipts and payments made during the year are kept track of.
See lessWhich one of the following expenditure is not charged on the Consolidated Fund of India?
PSAmaster
Which one of the following expenditures is not charged on the consolidated fund of India? Options Salary and allowances of the President of India Salary and allowances of the Vice President of India Salary and allowances of the Justice of the Supreme Court of India Salary and allowances of the speakRead more
Options
The Right Answer is D
Salary and allowances of the speakers of the Lok Sabha are not charged on the consolidated fund of India.
“Consolidated Fund” or “consolidated revenue fund” is the phrase used to refer to the government’s primary bank account in a number of Commonwealth of Nations member countries.
Unless Parliament expressly provides otherwise by law, every tax dollar is put into the fund.
Any funds received by the government that is not taxed and are not intended to be retained by the receiving agency (for example, fines) are classified as Consolidated Fund Extra Receipts (CFER). These are to be deposited immediately into the Consolidated Fund.
See lessIs salary of CAG charged on Consolidated Fund of India?
PSAmaster
The Indian government and each state government in India each have their own consolidated funds. Article 266(1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in theRead more
The Indian government and each state government in India each have their own consolidated funds.
Article 266(1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in the consolidated fund.
The Comptroller and Auditor General of India audit these funds and report on their management to the appropriate legislatures.
The budget is divided into two categories of expenditure: those ‘charged’ against the Consolidated Fund of India and those made from the Consolidated Fund of India.
The charged expenditure is non-votable by Parliament, meaning it can be discussed but not voted on, whereas the other type must be voted on.
The list of the charged expenditure is:
source
See lessWho is the cash Manager of Govt of India?
PSAmaster
The government deposits its monetary reserves with the Reserve Bank. The Reserve Bank may also function as a banker and handle debt management for state governments by agreement. Currently, save for Sikkim, the Reserve Bank operates as a banker to all state governments in India (including the UnionRead more
The government deposits its monetary reserves with the Reserve Bank. The Reserve Bank may also function as a banker and handle debt management for state governments by agreement.
Currently, save for Sikkim, the Reserve Bank operates as a banker to all state governments in India (including the Union Territory of Puducherry). Sikkim has a limited arrangement in place to handle its public debt.
Who is the cash Manager of Govt of India?
The Reserve Bank of India has performed the typical central banking duty of managing the government’s banking transactions since its foundation.
According to the Reserve Bank of India Act, 1934, the Central Government entrusts the Reserve Bank with all money, remittance, exchange, and banking operations in India, as well as the administration of the country’s public debt.
Additionally, the government deposits its monetary reserves with the Reserve Bank. The Reserve Bank may also function as a banker and handle debt management for state governments by agreement.
Currently, save for Sikkim, the Reserve Bank operates as a banker to all state governments in India (including the Union Territory of Puducherry). Sikkim has a limited arrangement in place to handle its public debt.
The Reserve Bank has well-defined responsibilities and provides governments with a variety of banking services.
The Reserve Bank acts as a banker to the government, receiving and disbursing funds on behalf of the various government agencies.
Additionally, the Reserve Bank is responsible for floating and managing loans on behalf of governments. It provides governments with Ways and Means Advances (a short-term interest-bearing loan) to address temporary discrepancies in their receipts and payments.
Additionally, similar to a portfolio manager, it arranges for the investment of governments’ surplus cash balances. The Reserve Bank advises the government on monetary and banking affairs when called upon to do so.
The Central Government and state governments have the authority to enact rules governing the receipt, custody, and disbursement of funds from the consolidated fund, contingency fund, and public account.
These restrictions are legally binding on the Reserve Bank, as the Reserve Bank holds accounts for these funds.
Governments’ banking functions are carried out by the Public Accounts Departments at Reserve Bank offices and branches. Due to the Reserve Bank’s 29 offices and sub-offices, it appoints other banks to act as its agents in doing banking business on behalf of governments.
The Reserve Bank compensates banks for carrying out government business on its behalf.
Currently, the Internal Debt Management Department at the Central Office and the Public Debt Office at Reserve Bank offices and branches manage public debt, including the flotation of new loans.
The final compilation of government accounts for the Centre and States is carried out in the Reserve Bank of India’s Nagpur office, which features a Central Accounts Section.
source
See lessWho holds Consolidated Fund of India?
PSAmaster
The Indian government and each state government in India each have their own consolidated funds. For instance, Article 266 (1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, beRead more
The Indian government and each state government in India each have their own consolidated funds.
For instance, Article 266 (1) of the Indian Constitution stipulates that revenues (direct and indirect taxes, money borrowed) and expenses (receipts from government loans), barring exceptional items, be included in the consolidated fund.
The Comptroller and Auditor General of India check these funds and reports on how they’re being used to the right people in the right places.
The budget is divided into two categories of expenditure: those “charged” against the Consolidated Fund of India and those “made” from the Consolidated Fund of India.
source
See less