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PM CARES is not govt. fund, Centre tells HC

  • Integrity Education, Delhi
  • 24, Sep 2021
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  • The Central government has informed the Delhi High Court that the PM CARES Fund is “not a fund of the Government of India and the amount does not go in the Consolidated Fund of India”.
  • The affidavit filed by an Under Secretary at the Prime Minister’s Office (PMO) said the PM CARES Fund was a charitable trust not created by or under the Constitution or by any law made by Parliament or by any State legislature.

Types of Govt fund
Consolidated Fund of India

  • All revenues received by the Government by way of taxes like Income Tax, Central Excise, Customs and other receipts flowing to the Government in connection with the conduct of Government business.
  • Similarly, all loans raised by the Government by issue of Public notifications, treasury bills (internal debt) and loans obtained from foreign governments and international institutions (external debt) are credited into this fund.
  • All expenditure of the government is incurred from this fund and no amount can be withdrawn from the Fund without authorization from the Parliament.

Contingency Fund of India

  • Art 267(I) of the constitution provides for  establishment of Contingency Fund
  • Its corpus is Rs. 500 crores.
  • The Secretary of, Finance Ministry holds this fund on behalf of the President of India.
  • This fund is used to meet unexpected or unforeseen expenditure.
  • Each state can have its own contingency fund established under Article 267(2)

Public Account

  • In the Public Account constituted under Article 266 (2) of the Constitution
  • The receipts under Public Account do not constitute normal receipts of Government.
  • Parliamentary authorization for payments from the Public Account is therefore not required.
  • Each state can have its own Public Account.
  • All other public money (other than those covered under the Consolidated Fund of India) received by or on behalf of the Indian Government are credited to this account/fund. This includes:
  1. Bank savings account of the various ministries/departments 
  2. National small savings fund, defense fund
  3. National Investment Fund (money earned from disinvestment)
  4. National Calamity & Contingency Fund (NCCF) (for Disaster Management)
  5. Provident fund, Postal insurance, etc.