Article 266 of Indian Constitution

Article 266 of Indian Constitution: Consolidated Funds and public accounts of India and of the States

Article 266 Consolidated Funds and public accounts of India and of the States – Constitution Of India

(1) Subject to the provisions of article 267 and to the provisions of this Chapter with respect to the assignment of the whole or part of the net proceeds of certain taxes and duties to States, all revenues received by the Government of India, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled “the Consolidated Fund of India”, and all revenues received by the Government of a State, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled “the Consolidated Fund of the State”.

(2) All other public moneys received by or on behalf of the Government of India or the Government of a State shall be credited to the public account of India or the public account of the State, as the case may be.

(3) No moneys out of the Consolidated Fund of India or the Consolidated Fund of a State shall be appropriated except in accordance with law and for the purposes and in the manner provided in this Constitution.

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What is Article 266 of Indian Constitution

Article 266 of the Indian Constitution pertains to the “Consolidated Fund of India.” Here are the key details of Article 266:

1. Consolidated Fund of India: Article 266 deals with the Consolidated Fund of India, which is the most important of the three funds created under the Constitution, the other two being the Contingency Fund of India and the Public Account.
2. Receipts into the Consolidated Fund: All revenues received by the Government of India, such as taxes, duties, fines, and fees, are credited into the Consolidated Fund of India. This includes both revenue received by the central government and revenue collected on its behalf by the states.
3. Expenditure from the Consolidated Fund: All expenditures of the central government are made from the Consolidated Fund of India. This includes the expenses related to the day-to-day functioning of the government, as well as various schemes and programs.
4. No Withdrawal without Parliamentary Authorization: No money can be withdrawn from the Consolidated Fund except under the authority of a warrant issued by the President of India, which is in accordance with the law passed by Parliament. This ensures that government spending is subject to parliamentary oversight.
5. Audit and Accountability: The accounts of the central government are audited by the Comptroller and Auditor General of India (CAG), who submits reports to the President. These reports are then placed before Parliament for examination and discussion.

In summary, Article 266 of the Indian Constitution establishes the Consolidated Fund of India as the primary fund into which all revenues are deposited and from which all expenditures of the central government are made. This helps ensure financial transparency and accountability in government operations.

Constitution Of India Part 12 Finance, Property, Contracts And Suits – Articles 264 to 300