With reference to the public finance, which of the following statements is/are correct?

        I.            All revenues received by the government by way of taxes whether direct or indirect except the loans raised through T-Bills (treasury bills) are credited to the consolidated fund of India

      II.            Receipts from treasury bills are included in the Public Account of India as treasury bills are short-term instruments.

Solution

All revenues received by the government by way of taxes whether direct or indirect and other receipts flowing to the government in connection with the conduct of government business like receipts from Railways, Post, transport, government PSU's etc. are credited into the Consolidated Fund of India. Similarly, all loans raised by the government by the issue of public notifications, treasury bills and loans obtained from foreign governments and international institutions are credited into this fund.