Public Account of India - What is it? •All Public Money received by Government other than those which are for credit to the Consolidated Fund of India are accounted for under Public Account. •Public Account constituted under Article 266 (2) of the Constitution. •All moneys received by an officer or court in connection with the affairs of the Union are called Public Accounts and are deposited in this Account. •The transactions under Debt, Deposits and Advances in this part are those in respect of which Government incurs a liability to repay the money received or has a claim to recover the amounts paid. •The transactions relating to `Remittance’ and `Suspense’ shall embrace all adjusting heads. •Receipt and disbursement in respect of certain transactions such as small savings, provident funds, reserve funds, deposits, suspense, remittances etc which do not form part of the Consolidated Fund of the state, are kept in the Public Account are not subject to vote by the State Legislature. •The initial debits or credits to these heads will be cleared eventually by corresponding receipts or payments. •Receipts under this account mainly flow from the sale of Savings Certificates, contributions into General Provident Fund and Public Provident Fund, Security Deposits and Earnest Money Deposits received by the Government. •In respect of such receipts, the Government is acting as a Banker or Trustee and refunds the money after completion of the contract/event. •Public Account is divided into six sub-divisions. There are (i) Small Savings, Provident Funds etc. (ii) Reserve Funds. (iii) Deposits and Advances. (iv) Suspense and Miscellaneous. (v) Remittances. (vi) Cash Balance. •Parliamentary authorization for payments from the Public Account is therefore not required. •Parliamentary control exercised over the finances of the Union, the Constitution provides for a Public Accounts Committee (PAC).
Posted on: Sat, 22 Mar 2014 08:07:46 +0000
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