CONSOLIDATED & CONTINGENCY FUND OF INDIA
WHAT DOES GOVERNMENT DO AFTER TAX COLLECTION?
- The Government collect taxes in two ways
- Direct Tax (Income Tax, Corporate Tax)
- Indirect Tax (Goods & Services Tax)
- After tax collection, Government submit it in the Consolidated Fund of India.
- It is like Bank account of Government of India.
CONSOLIDATED FUND OF INDIA
- It is constituted under Article 266 (1) of the Constitution of India.
- The Government meets all its expenditure from this fund.
- The government needs parliamentary approval to withdraw money from this fund.
- The Comptroller and Auditor General of India audits it.
- It is a fund to which all revenues and payments are credited and debited.
- It is made up of:
- All revenues received by the GOI.
- All loans raised by GOI through T-Bills, Loans.
- All money received in repayment of loans.
WHAT IS CONTINGENCY FUND OF INDIA?
- This fund is created to meet the unforeseen expenditures and disasters.
- It is an Emergency Fund of GOI.
- It is established under Article 267(1) of the Indian Constitution.
- This money is placed at the President's disposal.
- The Finance Secretary manages the money on behalf of President of India.
- In 2005, it was raised from Rs. 50 crores to Rs 500 crore.