Finance Minister Nirmala Sitharaman will present the Union Budget on July 23, having already presented an Interim Budget ahead of the Lok Sabha elections. In light of the upcoming Budget, we take a look at some of the terms associated with the exercise.
What is Contingency Fund?
The Contingency Fund serves as an imprest account designed to address urgent or unforeseen government expenditures. Any immediate expenses are met through the Contingency Fund, which is released by the President under Article 267. However, any disbursement from this fund necessitates subsequent approval from Parliament, and the withdrawn amount is returned to the fund from the Consolidated Fund.
What is Consolidated Fund?
The Consolidated Fund of India holds paramount importance among all government accounts. It encompasses revenues received by the government and its expenditures, excluding exceptional items. As per Article 266 (1), the Consolidated Fund comprises all revenues derived from direct and indirect taxes, money borrowed, and receipts from loans extended by the government. Every government expenditure is financed through this fund, except for exceptional items, which are covered by the Contingency Fund or the Public Account. Crucially, no funds can be withdrawn from the Consolidated Fund without the approval of Parliament.
Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.
Published 19 July 2024, 12:40 IST