Discussion
The Constitution provides for a Contingency Fund of India under
Answer: A
Correct answer: Article 267
Article 267 authorises Parliament to establish a Contingency Fund of India, placed at the disposal of the President, from which advances can be made to meet unforeseen expenditure pending authorisation by Parliament. The point of it is timing. All ordinary spending requires prior appropriation by law under Article 266, which takes time; the Contingency Fund allows urgent expenditure immediately, with the amount recouped once Parliament passes a supplementary appropriation. It is a revolving fund, restored to its full size after each withdrawal. It was established by the Contingency Fund of India Act of 1950, and its corpus has been raised over the years to ₹30,000 crore. Each state may establish a corresponding fund at the Governor’s disposal. The three government accounts should be kept distinct: the Consolidated Fund under Article 266(1) holds all revenues and needs appropriation; the Public Account under Article 266(2) holds money the government merely keeps as a banker and needs none; and the Contingency Fund under Article 267 is the imprest for emergencies.
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