What are the main divisions of the Govt. Accounts?
There are three parts —
(i) Consolidated Fund
(ii) Contingency Fund
(iii) Public Accounts
Consolidated Fund: There are separate funds for the Union and the States i.e. Consolidated Fund of the Union / Consolidated fund of the State.
(i) Revenue Receipt and Disbursement
(ii) Capital Receipt and Disbursement: Capital expenditure is made mainly out of borrowed or accumulated fund with the object either of increasing concrete assets of a material and permanent character or of reducing recurring liabilities.
(iii) Public Debt, Loans and Advance: The loans raised by the Govt, by issue of Treasury Bills, Loans or Ways and Means Advances and moneys received by the Govt, in repayment of loans are credited and from which the expenditure of the State is met when authorised by legislature.
Contingency Fund: There is a-fund under the disposal of the President of India / the Governor of a State. The said fund is called the Contingency Fund. Government takes advances from the said fund for the purpose of meeting the unforeseen expenditure pending authorisation of the Parliament / the State Legislature. The said advance is replenished within the financial year subject to approval of the Legislature. The expenditure made out of this fund is finally charged to the Consolidated Fund.
Public Account: The Public money received by the Government other than those credited to the Consolidated Fund is credited to the Public Accounts and from which disbursement may be made (out of the said fund) as per prescribed rules. All transactions regarding Debt, Deposit, Remittance and Suspense are made through this Accounts.