Disagreeing with the observations of Public Accounts Committee (PAC), the Finance Ministry on Saturday said it has followed standard practice and has not violated any Constitutional provision by not showing interest on tax refund as separate expenditure in the Budget.

“Government of India has been of the view that non reflection of interest on refund separately as expenditure in the annual financial statement laid before both the Houses of Parliament did not violate any constitutional provision,” said a Finance Ministry statement.

The statement comes in response to a report of the PAC which observed that an expenditure of Rs 37,365 crore was made on interest on refunds by the CBDT during 2006—07 to 2010—11 without obtaining approval of Parliament through necessary appropriations.

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