This term derives its origin from the Constitution of India.
Besides the normal receipts and expenditure of Government which relate to the Consolidated Fund, certain other transactions enter Government Accounts, in respect of which Government acts more as a banker. Transactions relating to provident funds, small savings, other deposits, etc., are a few examples. The public monies thus received are kept in the Public Account set up under Article 266(2) of the Constitution and the connected disbursements are also made there from.
Similarly, Receipt and disbursement in respect of certain transactions such as small savings, provident funds, reserve funds, deposits, suspense, remittances etc which do not form part of the Consolidated Fund of the state, are kept in the Public Account are not subject to vote by the State Legislature.