Q. Consider the following statements with reference to contingency fund of India:
1. The contingency fund of India has been established under Article 267(1) of the Indian constitution.
2. Unlike consolidated fund of India, payments from contingency fund of India can be made without parliamentary appropriation.
3. The corpus of the Contingency Fund as authorized by Parliament presently stands at Rs 1000 crore.
How many statements given above are correct?
Exp) Option b is the correct answer.
Statement 1 is correct.
The Constitution under article 267(1) 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. Th is 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. Th e fund is held by the fi nance secretary on behalf of the president. Like the public account of India, it is also operated by executive action.
Statement 2 is correct.
Contingency fund of India is operated by executive action, that is, the payments from this account can be made without parliamentary appropriation. Money from consolidated fund of India cannot be appropriated (issued or drawn) except in accordance with a parliamentary law.
Statement 3 is incorrect
A Contingency Fund of India which is an account placed at the disposal of the President of India to facilitate meeting of urgent unforeseen expenditure by the Government. The corpus of the Contingency Fund as authorized by Parliament presently stands at Rs 500 crore.
