Definition
Consolidated Fund of India
The Consolidated Fund of India is the government's main account into which all revenues, loans raised and recoveries flow, and from which most expenditure is drawn only with Parliament's approval.
Established under Article 266 of the Constitution, the Consolidated Fund of India holds the bulk of government money — tax and non-tax revenue, borrowings and loan recoveries. No money can be withdrawn from it without authorisation by Parliament, which is the constitutional basis for the appropriation bill.
It is one of three government accounts, alongside the Contingency Fund and the Public Account. Certain expenditures, such as the salaries of constitutional authorities and debt servicing, are 'charged' on the Consolidated Fund and are not subject to vote, though they are still discussed.
Related terms
- Contingency Fund of IndiaThe Contingency Fund of India is an imprest account placed at the disposal of the President to meet urgent, unforeseen expenditure pending Parliament's approval.
- Public Account of IndiaThe Public Account of India holds money where the government acts as a banker or trustee, such as provident funds and small savings, which it must eventually repay.
- Appropriation BillThe Appropriation Bill is the law that authorises the government to withdraw money from the Consolidated Fund of India to meet the expenditure approved in the Budget.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.