BharatNotes What is Consolidated Fund of India?
The Consolidated Fund of India is the most important of the three funds of the Union government, created by Article 266(1) of the Constitution. It receives all revenues of the Government of India (taxes such as income tax, customs and GST accruing to the Centre, plus non-tax revenue), all loans raised by the government through treasury bills, loans or ways and means advances, and all moneys received in repayment of loans. Article 266(3) mandates that no money can be appropriated out of the Fund "except in accordance with law and for the purposes and in the manner provided in this Constitution" — the constitutional foundation of Parliament's control over the public purse.
Key Features
- Parliamentary authorisation: Under Article 114(3), no money can be withdrawn from the Fund except under an Appropriation Act passed by Parliament after the Lok Sabha votes the demands for grants (Article 113).
- Charged expenditure: Article 112(3) lists expenditure charged on the Fund — payable without a vote of Parliament (though it may be discussed). This includes the emoluments of the President; salaries and allowances of the Chairman and Deputy Chairman of the Rajya Sabha and the Speaker and Deputy Speaker of the Lok Sabha; debt charges of the government; salaries, allowances and pensions of Supreme Court judges; pensions of High Court judges; salary, allowances and pension of the Comptroller and Auditor-General; sums required to satisfy court judgments, decrees or arbitral awards; and any other expenditure declared by the Constitution or by Parliament to be so charged.
- Federal parallel: Each State has its own Consolidated Fund under Article 266(1), with charged items listed in Article 202(3).
Consolidated Fund vs Other Funds
| Feature | Consolidated Fund (Art. 266(1)) | Public Account (Art. 266(2)) | Contingency Fund (Art. 267) |
|---|---|---|---|
| Contents | All revenues, loans raised, loan repayments received | Other public moneys (e.g. provident funds, small savings) held in trust | Imprest for unforeseen expenditure |
| Withdrawal | Only by Appropriation Act of Parliament | By executive action, no parliamentary vote | At President's disposal; Parliament's ex-post-facto approval |
| Corpus | No fixed corpus | No fixed corpus | Raised from Rs 500 crore to Rs 30,000 crore (Finance Act, 2021) |
Current Status
The Union Budget 2026-27, presented on 1 February 2026, provides for total expenditure of Rs 53,47,315 crore from the Consolidated Fund, about 7.7% higher than the revised estimate for 2025-26 (PRS Budget Analysis, Feb 2026). Receipts other than borrowings are estimated at Rs 36,51,547 crore, with the gap financed by borrowings of Rs 16,95,768 crore, corresponding to a fiscal deficit target of 4.3% of GDP for 2026-27 (as against 4.4% in RE 2025-26).
UPSC Angle
This is a foundational concept that underpins questions on the budgetary process, charged versus voted expenditure, Money Bills and Appropriation Bills, and the financial independence of constitutional offices. A reliable Prelims trick: salaries of High Court judges are charged on the State Consolidated Fund, but their pensions are charged on the Consolidated Fund of India — a distinction examiners repeatedly exploit.
