With reference to Indian Public Finance, consider the following statements

2004

With reference to Indian Public Finance, consider the following statements:
1. Disbursements from Public Accounts of India are subject to the Vote of Parliament.
2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State.
3. Appropriations and disbursements under the Railway Budget are subject to the same form of Parliamentary control as other appropriations and disbursements.
Which of these statements given above are correct?

(a)

1 and 2

(b)

2 and 3

(c)

1 and 3

(d)

1, 2 and 3

Answer:

(b)

Moderate

Explanation

Disbursements from the Public Accounts of India do not require Parliamentary approval (statement 1 is incorrect). However, the Constitution mandates the establishment of a Consolidated Fund, Public Account, and Contingency Fund for each state (statement 2 is correct). Appropriations and disbursements under the Railway Budget follow the same Parliamentary control as other appropriations (statement 3 is correct). Hence, (b) is the correct answer.