Question

All revenues received by the Union Government by way of taxes and other receipts for the conduct of Government business are credited to the ? 

(a) Contingency Fund of India 

(b) Public Account 

(c) Consolidated Fund of India 

(d) Deposits and Advances Fund

Answer 1

(c) Under Article 266 (1) of the Constitution of India, all revenues ( example tax revenue from personal income tax, corporate income tax, customs and excise duties as well as non-tax revenue such as licence fees, dividends and profits from public sector undertakings etc.) received by the Union government as well as all loans raised by issue of treasury bills, internal and external loans and all moneys received by the Union Government in repayment of loans shall form a consolidated fund.