With reference to the Union Government, consider the following statements: 1. The Department of Revenue responsible for the preparation of Union Budget that is presented to the Parliament. 2. No amount can be withdrawn from the Consolidated Fund of India without the authorization from the Parliament of India 3. All the disbursements made from Public Account also need authorization from the Parliament of India. Which of the statements given above is/are correct? Correct Answer 2 only The correct answer is 2 only. The budget is prepared by the Department of Economic Affairs. Hence Option 1 is Not Correct. Provident fund deposits, savings bank deposits, remittances etc are credited to the Public Account. The Public Account is operated by the executive action i.e. payment from this account can be made without Parliamentary appropriation. Hence Option 3 is Not Correct. The Constitution of India provides for the following three kinds of funds for the Central government: 1. Consolidated Fund of India (Article 266) 2. Public Account of India (Article 266) 3. Contingency Fund of India (Article 267) Consolidated Fund of India It is a fund to which all receipts are credited and all payments are debited. No money out of this fund can be appropriated (issued or drawn) except in accordance with parliamentary law. Hence Option 2 is correct. Public Account of India All other public money (other than those which are credited to the Consolidated Fund of India) received by or on behalf of the Government of India shall be credited to the Public Account of India. This account is operated by executive action, that is, the payments from this account can be made without parliamentary appropriation. Such payments are mostly in the nature of banking transactions. Contingency Fund of India This fund is placed at the disposal of the president, and he can make advances out of it to meet unforeseen expenditure pending its authorisation by the Parliament. The fund is held by the finance secretary on behalf of the President. Like the public account of India, it is also operated by executive action.