Contingency Fund of India

Subject – Polity

Context – FinMin asks depts to curb expenses within approved RE ceilings

Concept –

Provision for this fund is made in Article 267(1) of the Constitution of India.
The Constitution authorised the Parliament to establish a ‘Contingency Fund of India’, into which amounts determined by law are paid from time to time.
Accordingly, the Parliament enacted the contingency fund of India Act in 1950.
This fund is placed at the disposal of the president, and he can make advances out of it to meet unforeseen expenditure pending its authorisation by the Parliament.
The fund is held by the finance secretary on behalf of the president.
Like the public account of India, it is also operated by executive action.
Each state can have its own contingency fund established under Article 267(2)