Question

Who exercises control over the Consolidated Fund of India?
A.Prime Minister
B.President
C.Finance Minister
D.Parliament

Answer 1

Hint: The Consolidated Fund of India is the fund that is filled by direct and indirect taxes. It also has the amount which came from the repayment of loans that agencies take from the Indian government.

Complete Step by Step answer: This fund has a large concentration of money and hence returning of loans/interests of loans to the government by anyone/agency is also present here. The government suffices all its expenditure from the aforementioned fund. However, the government needs parliament’s prior approval to withdraw money from this fund. Article 266(1) of the Constitution of India has provisions for withdrawing any amount of money from the Consolidated Fund of India. One major provision is that each state can also have its own Consolidated Fund of the state with similar clauses and norms. The ‘Comptroller and Auditor General of India’ has the power to audit these funds. She/he then reports the same to the relevant legislatures.
Therefore, the option “D” is the correct answer.

Note: Apart from the Consolidated Fund of India (Article 266) there are two more major funds. These are the Contingency Fund of India and the Public Accounts of India.