Date: 30/06/2024
Accounts of the Government are kept in three parts:
Part -I: The Consolidated Fund: This fund comprises all revenues received by the State Government, all loans raised by the State Government (market loans, bonds, loans from the Central Government, loans from Financial Institutions, Special Securities issued to National Small Savings Fund, etc.), Ways and Means advances extended by the Reserve Bank of India and all money received by the State Government in repayment of loans. No money can be appropriated from this Fund except in accordance with law and for the purposes and in the manner provided by the Constitution of India. Certain categories of expenditure (e.g., salaries of Constitutional authorities, loan repayments, etc.), constitute a charge on
the Consolidated Fund of the State (Charged expenditure) and are not subject to vote by the Legislature. All other expenditure (Voted expenditure) is voted by the Legislature.
The Consolidated Fund comprises two sections: Revenue and Capital (including Public Debt, Loans and Advances). These are further categorized under ‘Receipts’ and ‘Expenditure’. The Revenue Receipts section is divided into three sectors, viz., ‘Tax Revenue’, ‘Non-Tax Revenue’, and ‘Grants in aid and Contributions’. These three sectors are further divided into sub-sectors like ‘Taxes on Income and Expenditure’, ‘Fiscal Services’, etc. The Capital Receipts section does not contain any sectors or sub-sectors. The Revenue Expenditure section is divided into four sectors, viz., ‘General Services’, ‘Social Services’, ‘Economic Services’ and ‘Grants in Aid and Contributions’. These sectors in the Revenue Expenditure section are further divided into sub-sectors like, ‘Organs of State’, ‘Education, Sports, Art and Culture’ etc. The Capital Expenditure section is sub-divided into seven sectors, viz., ‘General Services’, ‘Social Services’, ‘Economic Services’, ‘Public Debt’, ‘Loans and Advances’, ‘Inter-State Settlement’ and ‘Transfer to Contingency Fund’.
Part -II: The Contingency Fund: This fund is in the nature of an imprest which is established by the State Legislature by law, and is placed at the disposal of the Governor to enable advances to be made for meeting unforeseen expenditure pending authorisation of such expenditure by the State Legislature. The fund is recouped by debiting the expenditure to the concerned functional major head relating to the Consolidated Fund of the State.
Part -III: The Public Account: All other public money received by or on behalf of the Government, where the Government acts as a banker or trustee, are credited to the Public Account. The Public Account includes repayable like Small Savings and Provident Funds, Deposits (bearing interest and not bearing interest), Advances, Reserve Funds (bearing interest and not bearing interest), Remittances and Suspense heads (both of which are transitory heads, pending final booking).
The net cash balance available with the Government is also included under the Public Account. The Public Account comprises six sectors, viz., ‘Small Savings, Provident Funds etc.’ ‘Reserve Funds’, ‘Deposit and Advances’, ‘Suspense and Miscellaneous’, ‘Remittances’, and ‘Cash Balance’. These sectors are further
sub-divided into sub-sectors. The Public Account is not subject to the vote of the Legislature
