UPSC Prelims 2011 Q36: Indian Polity – Public Finance & Finance Commission
The authorization for the withdrawal of funds from the Consolidated Fund of India must
come from
- (a) The President of India
- (b) The Parliament of India
- (c) The Prime Minister of India
- (d) The Union Finance Minister
Answer: (b) The Parliament of India
Explanation
Who authorizes withdrawal from the Consolidated Fund of India
The Consolidated Fund of India holds all government revenues, and withdrawing from it requires a specific constitutional authorization.
| Option | Verdict | Reason |
|---|---|---|
| (a) The President of India | Incorrect | The President has a role in assenting to the Appropriation Bill, but the actual authorization comes via Parliament's law |
| (b) The Parliament of India | Correct | Under Article 114, money can be withdrawn from the Consolidated Fund only through an Appropriation Act passed by Parliament |
| (c) The Prime Minister of India | Incorrect | The PM has no direct constitutional authorization role here |
| (d) The Union Finance Minister | Incorrect | The Finance Minister presents the Budget/Appropriation Bill but does not personally authorize withdrawal |
Consolidated Fund withdrawal process:
| Step | Body |
|---|---|
| Bill presented | Finance Minister (as part of Budget) |
| Bill passed | Parliament — this is the authorization |
| Assent | President signs the Appropriation Act |
Answer: (b) The Parliament of India.
Why each option is right or wrong
- (a) Incorrect. The President's role is to give assent to the Appropriation Act, not to personally authorize the withdrawal.
- (b) CORRECT. Only Parliament, via an Appropriation Act under Article 114, can authorize withdrawal from the Consolidated Fund.
- (c) Incorrect. The Prime Minister has no constitutionally specified authorization power over the Fund.
- (d) Incorrect. The Finance Minister presents the budget, but the authorizing body is Parliament, not an individual minister.
Key point
Withdrawal from the Consolidated Fund of India requires authorization by PARLIAMENT, via an Appropriation Act (Article 114) — not the President, PM, or Finance Minister alone.
Remember
Consolidated Fund of India: withdrawal needs Parliament's Appropriation Act (Article 114).
Common mistakes
- Confusing the President's assent function with the actual authorizing power.
- Assuming a single minister (Finance Minister) can personally authorize withdrawal.
- Not knowing Article 114 governs Appropriation Acts.
Exam tip
Any 'who authorizes withdrawal from the Consolidated Fund' question = Parliament, via an Appropriation Act.
Sources
- Constitution of India — Article 114 (Appropriation Bills) and Article 266(3)
- M. Laxmikanth — Indian Polity (Parliament)