UPSC Exam > UPSC Questions > What is the Consolidated Fund used for in gov...
Start Learning for Free
What is the Consolidated Fund used for in government finance?
- a)Providing funds for new government schemes
- b)Covering unforeseen expenditures and contingencies
- c)Holding revenue from various sources of income
- d)Making payments for all government expenses
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
What is the Consolidated Fund used for in government finance?a)Providi...
The Consolidated Fund is used to make payments for all government expenses and can only be spent after approval by the legislature.
View all questions of this test
Most Upvoted Answer
What is the Consolidated Fund used for in government finance?a)Providi...
Overview of the Consolidated Fund
The Consolidated Fund is a critical component of government finance, serving as the primary account for managing the country's finances.
Purpose of the Consolidated Fund
- The Consolidated Fund is designed to hold all revenues collected by the government, including taxes and non-tax revenues.
- It serves as the main account from which all government expenditures are made.
Key Functions of the Consolidated Fund
- Making Payments for All Government Expenses:
- The fund is utilized for financing various government operations, including salaries of public servants, infrastructure projects, and social welfare schemes.
- All expenditures approved by the parliament are drawn from this fund, ensuring accountability and transparency in government spending.
- Legal Framework:
- According to constitutional provisions, no money can be withdrawn from the Consolidated Fund without parliamentary approval, reinforcing democratic oversight.
Other Options Explained
- Providing Funds for New Government Schemes:
- While the fund supports new schemes, it is not exclusively for this purpose. New schemes may require specific allocations or supplementary grants.
- Covering Unforeseen Expenditures and Contingencies:
- Contingency funds exist for unexpected expenses but are separate from the Consolidated Fund.
- Holding Revenue from Various Sources of Income:
- Although the fund holds revenue, its primary role extends beyond mere collection; it is about financing government operations.
Conclusion
In summary, the Consolidated Fund is essential for making payments for all government expenses, making option 'D' the correct choice. Its role is foundational in ensuring that the government's financial obligations are met in a structured and accountable manner.
The Consolidated Fund is a critical component of government finance, serving as the primary account for managing the country's finances.
Purpose of the Consolidated Fund
- The Consolidated Fund is designed to hold all revenues collected by the government, including taxes and non-tax revenues.
- It serves as the main account from which all government expenditures are made.
Key Functions of the Consolidated Fund
- Making Payments for All Government Expenses:
- The fund is utilized for financing various government operations, including salaries of public servants, infrastructure projects, and social welfare schemes.
- All expenditures approved by the parliament are drawn from this fund, ensuring accountability and transparency in government spending.
- Legal Framework:
- According to constitutional provisions, no money can be withdrawn from the Consolidated Fund without parliamentary approval, reinforcing democratic oversight.
Other Options Explained
- Providing Funds for New Government Schemes:
- While the fund supports new schemes, it is not exclusively for this purpose. New schemes may require specific allocations or supplementary grants.
- Covering Unforeseen Expenditures and Contingencies:
- Contingency funds exist for unexpected expenses but are separate from the Consolidated Fund.
- Holding Revenue from Various Sources of Income:
- Although the fund holds revenue, its primary role extends beyond mere collection; it is about financing government operations.
Conclusion
In summary, the Consolidated Fund is essential for making payments for all government expenses, making option 'D' the correct choice. Its role is foundational in ensuring that the government's financial obligations are met in a structured and accountable manner.
|
Explore Courses for UPSC exam
|
|
Top Courses for UPSCView all
What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer?
Question Description
What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer?.
What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer?.
Solutions for What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice What is the Consolidated Fund used for in government finance?a)Providing funds for new government schemesb)Covering unforeseen expenditures and contingenciesc)Holding revenue from various sources of incomed)Making payments for all government expensesCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup