📜 Article 266 of the Indian Constitution
Title: Consolidated Funds and Public Accounts of India and of the States
🔹 Full Text (Simplified):
Article 266 describes how government money is kept and used in India and the States. It defines three key types of government funds:
✅ Breakdown of Article 266:
| Clause | Description |
|---|---|
| Clause (1) | All revenues, loan receipts, and recoveries of loans by the Union or State shall go into a Consolidated Fund. 🔸 Called "Consolidated Fund of India" (for Centre) and "Consolidated Fund of the State" (for States). |
| Clause (2) | No money from the Consolidated Fund shall be spent without authorization by law (i.e., passed by Parliament or State Legislature). |
| Clause (3) | Money other than that in the Consolidated Fund (like Public money held by government) shall go into a Public Account of India or the State. This includes: 🔹 Provident funds 🔹 Small savings 🔹 Deposits and advances 🔹 Remittances, etc. 🔸 This money doesn’t need prior approval, but is subject to accounting and audit. |
🏦 Types of Government Funds as per Article 266:
| Fund Name | Purpose | Requires Parliament/Assembly Approval? |
|---|---|---|
| Consolidated Fund | All revenues, loans, and recoveries. Used for govt. expenditure. | ✅ Yes (via Appropriation Acts) |
| Public Account | Money held in trust like PFs, small savings, etc. | ❌ No (But subject to audit) |
📝 Note: The Contingency Fund (Article 267) is a separate fund for emergencies.
📌 Importance:
-
Ensures transparency and parliamentary control over public money.
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Aims to prevent misuse of government funds.
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