Consider the following statements regarding the Consolidated Fund of India: 1. All revenues received by the Government of India are credited to the Consolidated Fund of India under Article 266. 2. No moneys out of the Consolidated Fund of India can be appropriated except in accordance with law and for the purposes and in the manner provided in the Constitution. Which of the statements given above is/are correct?

💡 Solution & Explanation

Article 266 of the Constitution establishes the Consolidated Fund of India into which all revenues received by the Government of India, all loans raised by the issue of treasury bills, loans and ways and means advances, and all moneys received by the Government in repayment of loans shall be credited. Clause 3 mandates that no moneys out of the Consolidated Fund of India shall be appropriated except in accordance with law and for the purposes provided in the Constitution. Appropriation Acts passed under Article 114 authorize these withdrawals.