With reference to the Union Government, consider the following statements : 1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India. 3.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?
- (a) 1 and 2 only
- (b) 2 and 3 only
- (c) 2 only ✓ UPSC's answer
- (d) 1, 2 and 3
Why the answer is (c)
• Statement 2 is correct: under Article 266(3) no money can be withdrawn from the Consolidated Fund except under appropriation made by law passed by Parliament.
• Statement 1 is wrong: the Budget is prepared by the Department of Economic Affairs (Budget Division) in the Finance Ministry, not the Department of Revenue.
• Statement 3 is wrong: the Public Account (provident funds, small savings, deposits) is operated by executive action and does not need parliamentary authorisation for payments.
• Hence 2 only, option (c).
Why the other options are wrong
- (a) 1 and 2 only
- Statement 1 is wrong: DEA, not Revenue, prepares the Budget.
- (b) 2 and 3 only
- Statement 3 is wrong: Public Account needs no parliamentary authorisation.
- (d) 1, 2 and 3
- Statements 1 and 3 are wrong.
Asked in the GS Paper I of the UPSC Civil Services Preliminary Examination 2015, held on 23 August 2015. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.