UPSC Prelims 2015 Question:

With reference to the Union Government, consider the following statements:

1. The Department of Revenue is responsible for the preparation of the Union Budget that is presented to the Parliament.
2. No amount can be withdrawn from the Consolidated Fund of India without authorization from the Parliament of India.
3. All the disbursements made from Public Account also need the authorization from the Parliament of India.
   
   

Which of the statements given above is/are correct?

Explanation: 

• According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year. It is prepared by the Department of Economic Affairs. So, statement 1 is not correct.
  
  
• Article 114 of the Indian Constitution states that no money shall be withdrawn from the Consolidated Fund of India except under appropriation made by law passed in accordance with the provisions of this article. So, statement 2 is correct.
  
  
• The Public Account of India accounts for flows for those transactions where the government is merely acting as a banker. This fund was constituted under Article 266 (2) of the Constitution. These funds do not belong to the government. They have to be paid back at some time to their rightful owners. Because of the nature of the fund, expenditures from it are not required to be approved by the Parliament. So, statement 3 is not correct.
  
  

Therefore, option (3) is the correct answer.

Subject: Polity | Miscellaneous(pol)