Government Accounting & Budget MCQs with Answers for JKSSB Accounts Assistant
Exam strategy · 2026-10-13 · 8 min read
Government Accounting & Budgeting is a named topic in the JKSSB Finance Accounts Assistant and Panchayat Account Assistant syllabi. It sits between accountancy and polity, so it is easy to under-prepare. This guide gives you the articles, funds, deficits and audit chain that exam questions keep returning to.
1. The three funds
- Consolidated Fund of India (Art. 266(1)): all revenues, loans raised and loan repayments received by the Government. Money can be withdrawn only through an Appropriation Act
- Public Account of India (Art. 266(2)): money the Government holds in trust, such as provident funds and small savings. Withdrawals do not need Parliamentary appropriation
- Contingency Fund of India (Art. 267): an advance placed at the President's disposal for urgent, unforeseen expenditure; it is later repaid from the Consolidated Fund
2. How the Union Budget is passed
The Constitution does not use the word 'budget'; it speaks of the Annual Financial Statement. The key articles in order:
- Art. 112: the Annual Financial Statement is laid before Parliament each year. It separates expenditure charged on the Consolidated Fund from expenditure that is voted
- Art. 113: Demands for Grants are placed before the Lok Sabha; only the Lok Sabha votes on them
- Art. 114: the Appropriation Bill authorises withdrawal from the Consolidated Fund
- Art. 115: supplementary, additional or excess grants
- Art. 116: vote on account, vote of credit and exceptional grants
- Art. 117: special provisions for financial bills
3. Deficits in one place
- Revenue deficit = revenue expenditure − revenue receipts
- Fiscal deficit = total expenditure − total receipts excluding borrowings (it equals the Government's borrowing need)
- Primary deficit = fiscal deficit − interest payments
- Effective revenue deficit = revenue deficit − grants given for creating capital assets
4. Who keeps, audits and examines the accounts
- CGA compiles the Union's accounts and is the Principal Accounting Adviser; see our PFMS article
- Art. 150: the form of accounts is prescribed by the President on the CAG's advice
- CAG (Art. 148 appoints; Art. 151 reports go to the President): audits Union and State accounts
- Public Accounts Committee examines the CAG's reports
- Finance Commission (Art. 280): appointed every five years to recommend sharing of taxes between the Union and the States
5. Cash basis and classification
Government accounts in India are kept on a cash basis: a transaction is recorded when money actually moves. Transactions are classified by Major Head (four digits) down to the Object Head, which shows what the money was spent on.
6. How to prepare
Memorise the article numbers in the box above, then solve the MCQs below and move on to topic practice. Pair this with PFMS and the Accounts Assistant syllabus.
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Practice questions
Q1. Which Article provides for the Consolidated Fund of India?
- Article 112
- Article 266(1)
- Article 266(2)
- Article 267
Show answer
Article 266(1) — Article 266(1) creates the Consolidated Fund; 266(2) is the Public Account and 267 the Contingency Fund.
Q2. Provident fund and small-savings money held by the Government is kept in the:
- Consolidated Fund
- Contingency Fund
- Public Account
- Reserve Fund
Show answer
Public Account — The Public Account (Article 266(2)) holds money the Government keeps in trust.
Q3. The Contingency Fund of India is placed at the disposal of the:
- Finance Minister
- Prime Minister
- President
- Speaker of the Lok Sabha
Show answer
President — Article 267: the Fund is at the President's disposal, for urgent unforeseen expenditure.
Q4. The 'Annual Financial Statement' is laid before Parliament under:
- Article 110
- Article 112
- Article 114
- Article 280
Show answer
Article 112 — Article 112 requires the annual statement of estimated receipts and expenditure.
Q5. Which Article deals with the Appropriation Bill?
- Article 112
- Article 113
- Article 114
- Article 117
Show answer
Article 114 — Article 114: no money may be withdrawn from the Consolidated Fund except under an Appropriation Act.
Q6. Demands for Grants are voted on by:
- Both Houses equally
- Only the Rajya Sabha
- Only the Lok Sabha
- The President
Show answer
Only the Lok Sabha — Article 113: the demands are submitted to the Lok Sabha, which alone votes on them.
Q7. Expenditure charged on the Consolidated Fund is:
- Voted by Parliament
- Discussed but not voted
- Not discussed at all
- Voted by the Rajya Sabha only
Show answer
Discussed but not voted — Charged expenditure can be discussed but is not put to the vote.
Q8. Vote on account is provided for under:
- Article 112
- Article 115
- Article 116
- Article 150
Show answer
Article 116 — Article 116 covers vote on account, vote of credit and exceptional grants.
Q9. Fiscal deficit equals:
- Revenue expenditure − revenue receipts
- Total expenditure − total receipts excluding borrowings
- Fiscal deficit − interest payments
- Capital expenditure − capital receipts
Show answer
Total expenditure − total receipts excluding borrowings — Fiscal deficit is the Government's borrowing requirement.
Q10. Primary deficit is:
- Fiscal deficit − interest payments
- Revenue deficit − capital receipts
- Fiscal deficit + interest payments
- Total expenditure − tax revenue
Show answer
Fiscal deficit − interest payments — Primary deficit strips out interest payments from the fiscal deficit.
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