Illustration for representational purposes.
Credit: iStock Photo
Union Finance Minister Nirmala Sitharaman will, on February 1, present a record eight consecutive Union Budget.
The Budget contains several heads, which need to be understood to comprehend the document.
With the unveiling of India's financial plans for the year mere days away, we take a look what public account means.
What is Public Account?
Constituted under Article 266 (2) of the Constitution, this fund accounts fpr those transactions wherein the funds belong to others and the government is merely a banker.
Because these funds do not belong to the goverment, no approval from Parliament is required for withdrawal when they have to be paid back to the depositors.
However, money allocated from the Consolidated Fund of India for specific objectives or projects to the Public Account has to go through a vote of the Parliament before it can be withdrawn.
What does the Public Account comprise of?
The Public Account of India has five sub-heads. They are:
1. Small savings—provident funds and other accounts
2. Reserve funds
3. Deposits and advances
4. Suspense and miscellaneous
5. Remittances