RAS question
Consolidated Fund of India is established under:
Correct answer: (D) Article 266(1).
The Consolidated Fund of India is established under Article 266(1) of the Constitution of India.
Explanation
Article 266(1) is the constitutional basis for the Consolidated Fund of India. The Comptroller and Auditor General of India PDF reproduces Article 266 and states that, subject to Article 267 and the relevant chapter on assignment of tax proceeds, all revenues received by the Government of India, all loans raised by it, and all money received in repayment of loans form one consolidated fund called the Consolidated Fund of India. Revenue receipts, borrowings, and loan recoveries flow into this fund. The withdrawal discipline is equally important. Article 266(3) says money from the Consolidated Fund can be appropriated only according to law, while Parliament approves withdrawals through the Appropriation Act.
Why the other options are wrong
- (A) Article 112 concerns the annual financial statement or budget presentation, so it is linked to presenting government estimates rather than establishing the Consolidated Fund of India.
- (B) Article 280 deals with the Finance Commission, which is a constitutional body for fiscal recommendations and not the provision creating the Consolidated Fund of India.
- (C) Article 267 relates to the Contingency Fund, so it points to a different constitutional fund and not the Consolidated Fund of India.
Concept
This tests the constitutional architecture of public finance: which fund receives Union revenues and borrowings, and how legislative control over withdrawals works. It recurs in RAS because budget, appropriation and fiscal accountability questions often turn on Articles 266, 267 and 112.