2.

Consolidated Fund

It is a specific fund to which all government revenues are credited and from which government
expenditure both Recurrent and Capital is met after approval of the Estimates by the National
Assembly. Established under section 103 of the constitution
REVENUE INFLOW OF CASH TO GOVERNMENT
Recurrent Revenue

-Taxes on income & profits (Income tax

Individuals/ companies, TDS)
-Taxes on Property Recurrent
-Taxes on Financial and Capital Transactions Expenditure
(Land Transfer Tax, Registration duty etc.) Consolidated (salaries, Travelling,
Fund Cost of utilities etc.)
Capital Revenue
- Grant from International Organisations

- Grant from Foreign Governments

- Reimbursement of Loan from Public enterprises
- Equity sales, issue of Govt Securities Capital
Expenditure
(constructions of roads& bridges;
constructions of schools/hospitals, acquisition of
vehicles, IT equipment, software)

(i) Prompt Assessment and collection of monies due (minimised arrears)

(ii) The Prompt Banking of money collected so as to reduce interest payment on overdrafts

(iii) The forecasting of Cash Flow (to allow Revenue Collecting departments to monitor their own
performance and secondly to enable Govt as a whole to plan and control its needs for borrowing and its
surplus available for investment.
Note as per Finance and Audit Act of 14 December 2018: -
(i) No money shall be withdrawn from the Consolidated Fund except on the authority
of a warrant under the Minister’s hand and no such warrant shall be issued unless
the expenditure to which it relates :-

 Has been authorized by an Appropriation Act in respect of the fiscal year

during which the withdrawal is to take place; or
 Is authorized by this act or by any other enactment directly charging it on the
Consolidated Fund.