Question

Who controls the consolidated fund of the state?
A.The Chief Minister of the state
B.The Governor of the state
C.The Finance Minister of the state
D.The Legislative Assembly

Answer 1

Hint: The Consolidated Fund is the source for all the transactions of the state budget whether of capital, revenue or loan nature. State Tax and Non-Tax revenues are received in the Consolidated Fund and expenditures are met out of the Consolidated Fund. The Consolidated Fund of the state also receives internal and external loans and all money received in repayment of loans by the State Government.

Complete Step by Step answer: Option A: is incorrect. Although the Chief Minister is the leader of the party or coalition with the most seats in the State Legislative Assembly and heads the government in the state, the power to control the Consolidated Fund of the state does not lie with them.
Option B: is correct. As the nominal head of the state, appointed by the President of India, the Governor of the state has to lay down the annual financial statement before the house or houses of the State Legislature. It has a detailed account of the estimated receipts and expenditure for that year. Thus, the Governor has effective control over the Consolidated Fund of the state.
Option C: the finance minister of the state is incorrect.
Option D: the Legislative Assembly is incorrect. The Legislative assembly can discuss the expenditures made from the Consolidated Fund and introduce and pass money bills in the state.

Note: : The State budget comprises the Consolidated Fund, the Public account and the Contingency Fund. The Consolidated Fund itself contains two parts— the revenue account and the capital account.