Where does the Government Keep it's Money ?

 We all have in our pockets a personal wallet where we keep our money in the form of Cash or Credit/Debit Cards but have you ever wondered where does the Indian Government keeps it's money. From where Government takes money to implement the schemes, build roads, highways, give salaries to government officials and ministers etc.

There are 3 types of Funds or we can say wallet of the Indian Government.

Money: Image is for representative purpose only

Consolidated Fund Of India:

Under Article 266(1) of the Indian Constitution "All revenues received by the Government by way of Taxes like Income Tax, Central Excise, Customs and other receipts flowing to the Government in connection with the conduct of Government Business i.e. Non-Tax Revenues are credited into the Consolidated Fund Of India"

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- All States can have their own Consolidated Fund and in the Central Government the Comptroller and Auditor General Of India(CAG) is responsible for making audit to this fund. The Government takes money from this Funds for multiple purposes and all financial requirements of the Government are fulfilled from this fund. The approval of the Parliament is required for taking money from this fund and without the approval no money can be debited from this fund.      

Contingency Fund Of India:

Art 267(1) of the Constitution provides that "Parliament may by law establish a Contingency Fund in the nature of and Imprest to be entitled the Contingency Fund Of India which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the President to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by Parliament by law under Article 115 or Article 116".

- In this Fund the money is kept as an Imprest amount or you can say an Emergency fund. Now consider a situation where suddenly a flood, cyclone or a pandemic arises in any part of the country and immediate action of the Government is required now in this situation the Government does not have time to take permission from the Parliament and take money from the Consolidated Fund so for this reason the Contingency Fund is formed where we take money immediately now for this the Finance Secretary in the Department of Economic Affairs is entitled to issue order on behalf of the President. The amount in this fund is fixed to be 500cr and the money is taken from the Consolidated Fund to refill this amount.

Public Accounts Of India:

Article 266(2) of the Indian Constitution says that "All other Public Money received or on behalf of the Government of India or the Government of a State shall be entitled to the Public Account of India or the Public Account of the State, as the case may be"

-Now all the money which the Government has taken from the Public is credited in this Fund. For example you have opened your savings bank  account is any Government bank or you have paid money to the Government for any service or scheme will be submitted into this account the Government cannot use this money as it is the money of the public.

Source: www.ccaind.nic.in

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