With reference to the Union Government consider the following statements.

1. The Department of Revenue is responsible for the preparation of Union Budget that is presented to the parliament
2. No amount can be withdrawn from the Consolidated Fund of India without the authorization of Parliament of India.
3. All the disbursements made from Public Account also need the Authorization from the Parliament of India

Which of the following statements given above is/are correct?

The Constitution establishes three types of funds:

1. Consolidated Fund of India
2. Public Account
3. Contingency Fund

Withdrawals from the Consolidated Fund of India require prior authorization from the Parliament of India. For the Contingency Fund of India, parliamentary authorization can be obtained after the withdrawal. Withdrawals from the Public Account do not require prior authorization from the Parliament of India.

The Department of Revenue is primarily responsible for assessing revenues from various central taxes. The Department of Expenditure assesses expenditure estimates for different heads and resources of Public Sector Undertakings (PSUs).

The Budget Division, which is responsible for the preparation of the Union Budget, is a part of the Department of Economic Affairs. The overall budget-making process is coordinated by the Finance Secretary.

Statement 1 is not correct. Statement 2 is correct. Statement 3 is not correct. Hence, only statement 2 is correct.

Sources:

• Rediff.com - Budget Division