Home The Constitution Part XII Article 266

Art. 266 Part XII: Finance, Property, Contracts and Suits

Consolidated Funds and Public Accounts of India and of the States

Exact text — Constitution of India

(1) Subject to the provisions of article 267 and to the provisions of this Chapter with respect to the assignment of the whole or part of the net proceeds of certain taxes and duties to States, all revenues received by the Government of India, all loans raised by that Government... and all moneys received by that Government in repayment of loans shall form one consolidated fund to be entitled 'the Consolidated Fund of India', and all revenues received by the Government of a State... shall form one consolidated fund to be entitled 'the Consolidated Fund of the State'. (2) All other public moneys received by or on behalf of the Government of India or the Government of a State shall be credited to the public account of India or the public account of the State, as the case may be. (3) No moneys out of the Consolidated Fund of India or the Consolidated Fund of a State shall be appropriated except in accordance with law and for the purposes and in the manner provided in this Constitution.

In Plain English

What this Article actually means

This Article creates the government's main bank account — the Consolidated Fund — into which essentially all government revenue, loans, and loan repayments flow, and from which money can only be spent ('appropriated') through a proper legal process, not at the executive's discretion. A separate 'public account' captures other government-held moneys not part of general revenue.

Why This Matters To You

How it shows up in everyday life

This is why every rupee of government spending you hear about in the Budget ultimately traces back to authorised withdrawal from this Consolidated Fund — it's the central financial plumbing ensuring Parliament (or a State Legislature) maintains control over how public money is actually spent.

Read alongside this one

Art. 267 — Contingency Fund Art. 112 — Annual Financial Statement

Frequently Asked

Quick answers about Article 266

Can the government spend money without Parliament's approval?

Not from the Consolidated Fund — clause (3) specifically requires spending to follow the law and constitutional procedure, generally meaning Parliamentary (or State Legislature) approval through the Budget process, with limited exceptions like the Contingency Fund for genuine emergencies.

← PreviousArticle 265: Taxes Not to Be Imposed Save by Authority of Law Next →Article 267: Contingency Fund

The text above reproduces Article 266 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.