Article 266 of CoI : Article 266: Consolidated Funds and public accounts of India and of the States.

Explanation using Example

Example 1:

Scenario: The Government of India receives revenue from income tax collections and issues treasury bills to raise funds for infrastructure projects.

Application:

1. All income tax revenues collected by the Government of India are deposited into the Consolidated Fund of India.
2. The funds raised through the issuance of treasury bills are also deposited into the Consolidated Fund of India.
3. Any repayment of loans given by the Government of India to other entities is credited back to the Consolidated Fund of India.
4. These funds can only be used for government expenditures as per the laws and procedures outlined in the Constitution.

Example 2:

Scenario: The Government of Maharashtra receives revenue from state sales tax and raises a loan through treasury bills to fund a new highway project.

Application:

1. All sales tax revenues collected by the Government of Maharashtra are deposited into the Consolidated Fund of the State of Maharashtra.
2. The funds raised through the issuance of treasury bills for the highway project are also deposited into the Consolidated Fund of the State.
3. Any repayment of loans given by the Government of Maharashtra to other entities is credited back to the Consolidated Fund of the State.
4. These funds can only be used for state government expenditures as per the laws and procedures outlined in the Constitution.

Example 3:

Scenario: The Government of India receives a grant from an international organization for a specific health project.

Application:

1. The grant received from the international organization is considered "public money" and is credited to the public account of India.
2. This money is separate from the Consolidated Fund of India and is used specifically for the health project as per the terms of the grant.
3. The expenditure of this money is also subject to the laws and procedures outlined in the Constitution.

Example 4:

Scenario: The Government of Karnataka receives revenue from property taxes and issues a loan to fund a new school construction project.

Application:

1. All property tax revenues collected by the Government of Karnataka are deposited into the Consolidated Fund of the State of Karnataka.
2. The funds raised through the issuance of a loan for the school construction project are also deposited into the Consolidated Fund of the State.
3. Any repayment of loans given by the Government of Karnataka to other entities is credited back to the Consolidated Fund of the State.
4. These funds can only be used for state government expenditures as per the laws and procedures outlined in the Constitution.