Constitution of India · Part XII: Finance, Property, Contracts and Suits · General
Article 266: Consolidated Funds and public accounts of India and of the States
In plain words
All revenues of the Government of India, loans it raises, and loan repayments it receives form the Consolidated Fund of India. The same for a State forms the Consolidated Fund of the State. Other public money received goes into the public account of India or of the State.
- This is subject to article 267 and to the assignment of certain tax proceeds to States.
- No money can be appropriated from either Consolidated Fund except according to law and for the purposes and in the manner the Constitution provides.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official 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.
Source: India Code (Legislative Department), the official text of the Constitution of India. As amended up to the Constitution (One Hundred and Sixth Amendment) Act, 2023. Text as on 10 September 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the article 266
- Saquib Nisar v. State
- Raghav Chadha v. Rajya Sabha Secretariat
- Jalkal Vibhag Nagar Nigam & Ors. v. Pradeshiya Industrial and Investment Corporation & Anr.
- Shanti Devi Alias Shanti Mishra v. Union of India & Ors.
- Justice K. S. Puttaswamy (Retd.) v. Union of India & Ors.
- State of Kerala and Others v. Fr. William Fernandez Etc. Etc.
- Association of Unified Tele Services Providers & Others v. Union of India
- S. Subramaniam Balaji v. The Government of Tamil Nadu & Ors.
- Bhim Singh v. Union of India and Ors.
- Goa Glass Fibre Ltd. & Anr. v. State of Goa and Anr.
- Subhash Chandra & Anr. v. Delhi Subordinate Services Selection Board & Ors.
- A.P.S.R.T.C. and Ors v. G. Srinivasa Reddy and Ors.
- T.N. Godavarman Thirumulpad v. Union of India and Ors.
- State of Himachal Pradesh and Ors. v. M/S. Shivalik Agro Poly Products and Ors.
- Saurashtra Cement and Chemical Industries v. Union of India and Ors.
- A.P. Paper Mills Ltd. Etc. Etc v. Government of A.P. and Anr.
- M/S. B.R. Enterprises Etc. Etc. v. State of U.P. and Ors. Etc. Etc.
- New Delhi Municipal Council v. State of Punjab Etc. Etc.
- Krishi Upaj Mandi Samiti and Ors. v. Orient Paper and Industries Ltd.
- Amrit Banaspati Co. Ltd. and Anr. v. State of Punjab and Anr.
- Gujchem Distillers India Ltd. v. State of Gujarat and Anr.
- Municipal Corporation of the City of Baroda v. Babubhai Himatlal
- Sreenivasa General Traders & Ors. Etc. v. State of Andhra Pradesh & Ors. Etc.
- Southern Pharmaceuticals & Chemicals Trichur & Ors. Etc. v. State of Kerala & Ors. Etc.
- State of Tamil Nadu v. Pyare Lal Malhotra Etc.
- State of Rajasthan and Ors. v. Saijanlal Panjawat & Ors.
- Secretary, Government of Madras, Home Department and Another v. Zenith Lamp & Electrical Ltd.
- Devi Das Gopal Krishnan & Ors. v. State of Punjab & Ors.
- Jaora Sugar Mills (P) Ltd. v. State of Madhya Pradesh and Others
- Rai Sahib Ram Jawaya Kapur and Others v. The State of Punjab