Essentials of India's Financial Funds: CFI, PAI, and CFI
Q: What is the Consolidated Fund of India (CFI)?
A: The CFI is the primary government account where all revenues, loans, and repayments received by the Union government are deposited. It's like the government's main bank account.
Q: What types of revenues are included in the CFI?
A: The CFI includes all tax revenues (personal income tax, corporate tax, customs, excise duties) and non-tax revenues (license fees, RBI dividends, profits from public sector undertakings).
Q: How is money spent from the CFI?
A: Any expenditure from the CFI requires approval through an Appropriation Bill passed by the Parliament.
Q: What is the Public Account of India (PAI)?
A: The PAI is an account where the government holds money on behalf of others. It's like a bank account where the government acts as a custodian for funds like provident funds and small savings.
Q: Does spending from the PAI require parliamentary approval?
A: No, expenditure from the PAI doesn't require parliamentary approval because the funds don't belong to the government.
Q: What are some examples of funds included in the PAI?
A: The PAI includes provident funds, small savings, and other dedicated funds like the National Clean Energy Fund,National Investment Fund, and National Disaster Response Fund (NDRF).
Q: What is the Contingency Fund of India (CFI)?
A: The CFI is a fund created to meet unforeseen expenditures when the Parliament is not in session. The President can authorize withdrawals from this fund, which are later replenished through a Money Bill.
Q: What is the current size of the CFI?
A: The CFI was initially ₹50 crores, increased to ₹500 crores in 2005, and further raised to ₹30,000 crores in 2021.
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