The money accruing from the sale of 'National Savings Certificates' goes to which account of the Government of India?
- A.Consolidated Fund of India
- B.Prime Minister's National Relief Fund
- C.Public Account of India
- D.Contingency Fund of India
Correct answer
Explanation
The correct answer is C, Public Account of India. Money from National Savings Certificates belongs to the savers, not the government, so under Article 266(2) it is credited to the Public Account. The Public Account holds money that the government keeps as a banker or trustee, such as small savings, provident funds, deposits and remittances. Since the money has to be returned to its owners, it can be paid out by executive action without a vote of Parliament. Option A is wrong because the Consolidated Fund, under Article 266(1), receives the government's own revenues, the loans it raises and loan repayments, and nothing can be spent from it without Parliament's approval. Option B is wrong because the Prime Minister's National Relief Fund is a separate fund built from public donations, set up in 1948 to help people displaced by Partition. Option D is wrong because the Contingency Fund, under Article 267, is kept at the disposal of the President for urgent, unforeseen spending. Exam tip: Article 266(1) is the Consolidated Fund, 266(2) the Public Account, 267 the Contingency Fund.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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