Consolidated fund

Updated: Aug 20, 2021

Sums standing to a particular account of the exchequer (for which it is often used synonymously) into which the proceeds of taxation ‘are made and from which government expenditures are made. Prior to 1787, different funds were maintained for various purposes and taxation receipts divided among them, but after that date the various funds were consolidated. Consolidated fund standing services is an item in the British budget which includes expenditure authorized by specific legislation. This expenditure, such as the salaries of judges and payments to the national loans funds for service of the national debt, is paid out of the consolidated fund, but unlike supply services does not have to be voted arinually in Parliament.

Reference: The Penguin Dictionary of Economics, 3rd edt.

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