Eric Adjei 57 Questions 81 Answers 16 Best Answers 5 Points View Profile 0 Eric Adjei Asked: December 1, 20202020-12-01T21:39:26+00:00 2020-12-01T21:39:26+00:00In: Public Sector Accounting in India Who is the guardian of public funds in India 0 Who is the guardian of public funds in India? Share Facebook 1 Answer Voted Oldest Recent Biney 32 Questions 3 Answers 3 Best Answers 42 Points View Profile Best Answer Biney 2020-12-28T13:44:18+00:00Added an answer on December 28, 2020 at 1:44 pm The guardian of public fund in India is Comptroller And Auditor General Of India & Public Accounts Committee. Article 266 & Article 267 of the Indian Constitution deal with the Funds of Government of India. There are 3 main types of funds, which the Indian Government can use to fulfil the needs of various purposes related to public concern. Now let’s discuss about these funds- (1)Consolidated Fund of India – can only be used after parliament nod. (2) Public Accounts of India – at the disposal of the executives. (3) Contingency Fund~ This article 267 authorizes the Parliament to provide by law a contingency fund to meet some emergency situations. Therefore: The guardian of public fund in India is Comptroller And Auditor General Of India & Public Accounts Committee. Duties of CAG of India: He audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT having a legislative assembly. He audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state. He audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments. He audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies when so required by related laws. Duties PAC of India: Functions of the Public Accounts Committee: It examines appropriation accounts and financial accounts of the central government which is laid before Lok Sabha It scrutinizes the audit reports of CAG. It examines the accounts of State corporations, Trading concerns and, Manufacturing projects It examines the accounts of Autonomous, Semi-autonomous bodies It keeps a check on the money spent on any service during a financial year. If the money is in excess of the amount granted by the Lok Sabha for that purpose, it goes on to its report. SOURCE: Quora Funds of Government of India The accounts of Government are kept in three parts Consolidated Funds of India Contingency Funds of India Public Account Consolidated Fund of India This is the chief account of the Government of India. The inflow to this fund is by way of taxes like Income Tax, Central Excise, Customs and also non-tax revenues which arise to the government in connection with the conduct of its business. Loans raised by the issue of treasury bills are also received in this fund. The government meets all its expenditure including loan repayments from this fund. No amount can be withdrawn from the fund without the authorisation from the Parliament. This fund is formed under the provision of Article 266 (1) of the Indian Constitution. Each state may have its own consolidated fund of the state with similar provisions. Public Account The Public Account is constituted under Article 266 (2) of the Constitution. All other public amounts of money (other than those covered under Consolidated Fund of India) received by or on behalf of the Government of India are credited to the public account of India. The transactions under Debt, Deposits and Advances in this part are those in respect of which Government incurs a liability to repay the money received or has a claim to recover the amounts paid. The receipts under Public Account do not constitute normal receipts of Government. Parliamentary authorization for payments from the Public Account is therefore not required. Each state may have its own Public Fund on similar lines. Contingency Fund of India The Contingency Fund of India is set up in the nature of an imprest account under Article 267 (1) of the Constitution of India. The corpus of this fund is Rs. 500 crores. Advances from the fund are made for the purposes of meeting unforeseen expenditure by the President of India. The amount is resumed to the Fund to the full extent as soon as Parliament authorizes additional expenditure. The Secretary to the Government of India, Ministry of Finance, Department of Economic Affairs holds the fund on behalf of the President of India. Each state may have its own Contingency Fund on similar lines. The following table summarises the three funds Fund. Income Expenditure Parliamentary Authorisation required The article under which constituted Consolidated Fund Taxes and non-tax revenue All expenditure Prior to expenditure 266 (1) Public Fund Public money other than those under consolidated fund Not required 266 (2) Contingency Fund Fixed corpus of Rs. 500 crore Unforeseen expenditure After the expenditure 267 (1) SOURCE: leadthecompetition.in 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerLeave an answerCancel reply Featured image Select file Browse Save my name, email, and website in this browser for the next time I comment.