CONSOLIDATED FUND OF INDIA.
In terms of article 266(I) of the Constitution of India, a fund is created which will act as a reservoir in which all the earnings flow (credited) and from which the expenditures of Government as authorized by the Parliament will be made. Central Government is having Consolidated Fund of India. Any expenditure to be made from this fund needs Parliament’s sanction/votes. For this purpose, a bill known as “Appropriation bill” is required to be introduced by Railway minister in Parliament. The bill is discussed and when passed by the Parliament is send to the President of India for his assent. When the assent is given by the President, the bill gets converted into the “Appropriation Act” and this act enables to withdraw the money from the Consolidated Fund Of India.
