Budget 2026: Finance Ministry's Main Bank Account and Funding Explained

• Union Budget 2026, presented by Finance Minister Nirmala Sitharaman, details how public money is raised, stored, and spent for the financial year 2026–27.
• The Reserve Bank of India (RBI) acts as the primary banker to the Ministry of Finance, managing key government accounts like the Consolidated Fund, Contingency Fund, and Public Account.
• All government revenues, primarily from tax (income tax, corporate tax, GST, customs duty) and non-tax sources (PSU dividends, license fees), are deposited into the Consolidated Fund of India.
• Withdrawals from the Consolidated Fund require parliamentary approval via the Appropriation Bill, as stipulated by Article 266(1) of the Constitution.
• Funds are released to ministries in phases, not lump sums, under a “just-in-time” cash management system, and unspent balances lapse at the end of the financial year.

Why It Matters: The RBI manages the Finance Ministry's main accounts, funded by taxes and non-tax revenues, with parliamentary approval for spending.