RAS question
The Public Account of India is dealt with under:
Correct answer: (D) Article 266(2).
The Public Account of India is dealt with under Article 266(2) of the Constitution of India, which credits all other public moneys received by or on behalf of the Government of India to that account.
Explanation
Article 266 separates government receipts into distinct constitutional funds. Clause (1) creates the Consolidated Fund for revenues, loans raised by the government and loan repayments. Clause (2) then covers the residual category: all other public moneys received by or on behalf of the Government of India or a State must be credited to the Public Account of India or the Public Account of the State, as applicable. That is why provident fund and small-savings type deposits are treated differently from normal government revenue: the government is holding or managing such money rather than treating it as its own revenue in the Consolidated Fund. Hence the Public Account of India is located in Article 266(2), not in Article 266(1), 267 or 268.
Why the other options are wrong
- (A) Article 268 deals with duties levied by the Union but collected and appropriated by the States, so it is about revenue distribution, not the Public Account of India.
- (B) Article 266(1) creates the Consolidated Fund of India and the Consolidated Fund of the State; it does not create the Public Account.
- (C) Article 267 provides for the Contingency Fund, an imprest for unforeseen expenditure, whereas the Public Account is covered separately under Article 266(2).
Concept
Constitutional financial architecture distinguishes the Consolidated Fund, Public Account and Contingency Fund. Articles 266-267 are basic to budget, audit and legislative control over public money and therefore recur in RAS preparation.