With reference to the financial funds of the Union Government, consider the following statements:
1. Parliamentary approval is mandatory to withdraw any funds from the Consolidated Fund of India.
2. Any expenditure or disbursement made from the Public Account of India requires prior parliamentary authorization.
Which of the statements given above is/are correct?

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Accepted Answer

Statement 1 is correct because no money can be withdrawn from the Consolidated Fund of India (CFI) without authorization from the Parliament. Statement 2 is incorrect because the Public Account of India (Article 266(2)) contains public money where the government acts as a banker, and disbursements from it do not require prior parliamentary authorization.

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