Article 266

Consolidated Funds and Public Accounts of the Union and States

Official heading: “Consolidated Funds and public accounts of India and of the States”

Check this article against the official editionAwaiting human legal review

Source edition: The Constitution of India (as on 1 May 2026)
Source locator: Part XII, Article 266, printed pages 155–156
Last human source-link check: Not yet checked
Last human legal review: Not yet reviewed

Open official PDF at this article Report a text or source error

AI-assisted source comparisons are noted with the citations below; the check date remains pending until a human confirms the link. The report link opens your email app; you choose whether to send it.

1. In One Sentence

Constitutes the Consolidated Fund and Public Account for the Union and each State, mandating that no money can be withdrawn from the Consolidated Fund without parliamentary or legislative appropriation.

2. What It Means in Everyday Language

Article 266 establishes the two primary financial reservoirs for the Government of India and each State Government.

Clause (1) creates the Consolidated Fund of India and the Consolidated Fund of each State. All revenues received by the government, all loans raised through treasury bills or bonds, and all moneys received in repayment of loans flow into this Fund.

Clause (2) creates the Public Account of India and the Public Account of each State for all other public moneys received by or on behalf of the government (such as provident funds, judicial deposits, and small savings schemes).

Clause (3) contains a vital parliamentary safeguard: no moneys out of the Consolidated Fund can be appropriated or withdrawn except in accordance with law and for the purposes and in the manner provided in the Constitution (via an Appropriation Act under Articles 114 or 204).

3. Practical Illustrative Example

Everyday Scenario:

The government needs to spend money on national highway infrastructure or welfare subsidies.

Core takeaway: Under Article 266(3), the executive cannot withdraw a single rupee from the Consolidated Fund without an Appropriation Act passed by Parliament.

Illustrative Notice: Public Account moneys do not require formal legislative appropriation for disbursement because they are held by the government in a fiduciary or banking capacity.

4. Important Limits, Qualifications & Exceptions

Article 266 enforces democratic legislative control over the public purse.

Comprehensive revenue pool: Encompasses all taxes, loan proceeds, and loan repayments.
Strict appropriation rule: No withdrawal from the Consolidated Fund is permitted without statutory appropriation.
Public Account distinction: Fiduciary deposits and provident funds are held in the Public Account outside the annual budget vote.

5. Operative Constitutional Text

(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 by the issue of treasury bills, loans or ways and means advances 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, all loans raised by that Government by the issue of treasury bills, loans or ways and means advances and all moneys received by that Government in repayment of loans 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.

Transcription for reference; compare with the linked official editionNot yet verified by a human legal reviewer

6. Sources & Historical Assembly Deliberations

Assembly quotations are withheld until wording, dates, and attribution have been checked against the primary record.

Sources & Citation Metadata

•
Constitutional TextThe Constitution of India (as on 1 May 2026)Cited PDF page
Government of India (Legislative Department, Ministry of Law and Justice) • Part XII, Article 266, printed pages 155–156 • Human source-link check pending
Primary PDF accessed and transcribed with AI assistance on 14 October 2026. Formatting and amendment annotation markers are omitted; operative wording is retained. This is not human legal review. Later amendments and commencement notifications have not been comprehensively checked.

Human legal review is pending; compare the text with the cited editionNon-partisan educational resource