Revenues received by Government by way of taxation like income-tax, central excise, custom, land revenue (tax revenues) and other receipts are credited into the Consolidated Fund. Likewise, all loans raised by Government to issue of public notification, treasury bills (internal debt) and loans obtained from foreign governments and international monetary institutions (external debt) and all moneys received by Government in repayment of loans and interest thereon are also credited into this fund. All expenditures incurred by the Government for the conduct of its business including repayment of internal and external debt and release of loans to States/Union Territory Governments for various purposes are debited against this fund. (See Article 266 of the Constitution) (ii)
Contingency Fund of India
The Contingency Fund of India is established by law of the Parliament and is kept at the disposal of the President of India to enable the Government to meet unforeseen expenditure pending its authorization by the Parliament. The money is to be used to provide immediate relief to victims of natural calamities and also to implement any new policy decision taken by the Government, pending its approval by the Parliament. In all such cases, after the Parliament meets, a bill is presented indicating the total expenditure to be incurred on the scheme/ project during the current financial year. After the Parliament votes the bill, the money already spent out of the Contingency Fund is recouped by debiting the expenditure to the concerned functional major head etc. in the Consolidated Fund of India. (See Article 267 of the Constitution)
Public Account of India
All public money received by Government other than those which are for credit to the Consolidated Fund of India are accounted for under Public Account. The receipts into the Public Account and disbursements out of it are not subject to vote by the Parliament. Receipts under this account mainly flow from the sale of savings certificates, contributions into General Provident Fund and Public Provident Fund, Security Deposits and Earnest Money Deposits received by the Government. In respect of such receipts, the Government acts as a Banker or Trustee and refunds the money after completion of the contract/ event. The Public Account also includes various suspense and remittance heads.
The Consolidated Fund of India is divided into three main divisions, namely: (a) A Revenue Section with the two sub-divisions to account for Revenue Receipts (Tax and Non-Tax) and Revenue Expenditure (Major Head Codes 0020 to 1606 and 2011 to 3606). (b) A Capital Section which is divided into two subdivisions dealing with ‘ (i) Capital Receipts (Major Head Code 4000). (ii) Capital Expenditure (Major Head Codes 4046 to 5475). (c) Public Debt and Loans and Advances etc, (Major Head Codes 6001 to 7999). Contingency Fund being an imprest is accounted for under a single Major Head (Major Head Code 8000). Public Account is divided into six sub-divisions, namely:
(i) Small saving, Provident Funds etc. (Major Head Codes 8001 to 8013).
(ii) Reserve Funds (Major Head Codes 8115 to 8234).
(iii) Deposits and Advances (Major Head Codes 8336 to 8554).
(iv) Suspense and Miscellaneous (Major Head Codes 8656 to 8680).
(v) Remittances (Major Head Codes 8781 to 8797).
(vi) Cash Balance (Major Head Code 8999).
