Q. Since April 1, 2002 the entire net collections under the small saving schemes are transferred to States/Union Territories in India. This has been referred to as a loan from which among the following accounts?
Answer: Public Account of India
Notes: In the Union Budget 1999-00, a National Small Savings Fund (NSSF) has been created in the Public Account of India and all collections/ disbursements under small savings certificates, deposits and public provident fund are made into/ out of this Fund. Under the new accounting system, investments from the Fund are being made in Central and State Government securities as per the norms decided from time to time by the Government of India. Therefore, the figures for small savings since 1999-2000 relate to Centre’s share in small savings and prior to this period, the figures represent total small saving collections. Since April 1, 2002 the entire net collections under the small saving schemes are transferred to States/Union Territories. Thereafter, the amount represents reinvestment by NSSF in Central Government securities from redemption proceeds. This new system of transferring the entire net collections of small savings to States and Union Territories as loans from the Public Account is in vogue.
