Multiple choice

Which of the following statements is/are correct?

  1. Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in the form of Demands for Grants.
  2. Capital Budget consists capital receipts and capital payments.
  3. Moneys held by Government in Trust as in the case of Provident Funds, Small Savings collections, income of Government set apart for expenditure on specific objects like road development, primary education, Reserve/Special Funds etc. are kept in the Public Account. Public Account funds do not belong to Government and have to be finally paid back to the persons and authorities who deposited them.

  1. 1 and 2

  2. 1 and 3

  3. 2 and 3

  4. 1, 2, and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All three statements are correct. Article 113 of the Constitution deals with the presentation of demands for grants. The Capital Budget indeed comprises capital receipts and capital payments. The Public Account contains money held in trust (like Provident Funds, Small Savings) which must be returned to the depositors and doesn't belong to the government.

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