Consolidated Fund of India

What is Consolidated Fund of India?

The Consolidated Fund on India, as defined in Article 266(1) of the Indian Constitution. It is a repository for all revenue received by the Government of India. This includes the inflow from various sources such as income tax, customs, central excise, and non-tax revenue. Additionally, it envelopes the financial resources obtained through loans, whether via the issuance of treasury bills or other means, as well as any repayments made on these loans.

Essentially, the Consolidated Fund of India acts as the financial lifeblood through which all legitimate disbursements on behalf of the Indian government are facilitated. This fund serves as the principal reservoir from which all government expenditures are met, barring extraordinary items that find provision in the Contingency Fund or the Public Account.

Necessarily, no disbursement from this fund can be effectuated without the requisite sanction from a parliamentary statute. This strict adherence to parliamentary authorization ensures the transparent and accountable allocation of resources.

Each state within the Indian federation can establish its own Consolidated Funds, reflecting the central authority’s features and guidelines.

What are the sources of revenue for the Consolidated Fund of India?

The Consolidated Fund of India serves as the repository for all government revenue, including:

•  Revenue from direct taxes like income tax and corporate tax.

•  Revenue from indirect taxes, like the Goods and Services Tax (GST).

•  Dividends and profits obtained from Public Sector Undertakings (PSUs).

•  Earnings derived from the government's general services.

•  Receipts from disinvestment, debt repayments, and loan recoveries.

Note: Any withdrawal from the Consolidated Fund of India necessitates the explicit approval. of the Parliament, ensuring a rigid process that upholds transparency and accountability in the allocation of the nation's financial resources.

What is Charged Expenditure on Consolidated Fund of India?

• The disbursements designated as Charged Expenditures, sourced from the Consolidated Fund, fall under the category of non-votable charges.

• No voting procedure is involved in the withdrawal process of these expenditures from the Consolidated Fund of India.

• It is imperative to acknowledge that these charges are obligatory and must be honored irrespective of the passage or non-passage of the Budget.

• This category of expenses encompasses the salaries and allowances of several high-ranking officials and dignitaries, including:

  • The President

  • The Speaker of the Lok Sabha

  • The Deputy Speaker of the Lok Sabha

  • The Chairman and Deputy Chairman of the Rajya Sabha

  • Supreme Court judges, including their salaries and allowances

  • Pensions allocated to Supreme Court and High Court judges.