Constitution of India · Section Article 266
Consolidated Funds and public accounts of India and of the States
Article 266 — Consolidated Funds and public accounts of India and of the States
- Consolidated Funds and public accounts of India and of the States.—(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.
Plain English Summary
This article establishes two main money pots for the central government (Consolidated Fund of India) and each state government (Consolidated Fund of the State). All major income and loan proceeds are put into these funds, which are legally protected. Other public money is kept in separate public accounts.
Key Points
- The Consolidated Fund of India and the Consolidated Fund of a State are the main, consolidated funds for the central and state governments, respectively.
- All revenues received by the Government of India (including loans) form the Consolidated Fund of India.
- All revenues received by a State Government (including loans) form the Consolidated Fund of the State.
- Money from these funds can only be spent according to specific laws laid down in the Constitution.
Why It Matters
This article ensures that the main financial resources of the government are legally protected and cannot be spent arbitrarily, ensuring financial accountability.
Landmark Judgements
No major landmark judgements.