Q. Consider the following statements with reference to the Contingency Fund of India:
1. Any expenditure incurred from this fund does not require any kind of authorization from the Parliament.
2. The Corpus of this fund has been fixed by the Constitution.
3. The Cabinet Secretary holds the fund on behalf of the President of India.
How many of the above given statements are correct?
Exp) Option d is the correct answer.
Statement 1 is incorrect: Article 267 of the Constitution mandates formation of a corpus under Contingency Fund of India to deal with any emergency situation. The Parliament enacted the contingency fund of India Act in 1950. Any expenditure incurred from this fund requires a subsequent authorization from the Parliament. And the corpus has to be replenished with the same amount later.
Statement 2 is incorrect: The constitution itself has not fixed the corpus of the fund. The fund size is enhanced from time to time by the government. The government enhanced the Contingency Fund of India from Rs 500 crore to Rs 30,000 crore through the Finance Bill 2021. The fund can be increased through a Finance Bill when the Parliament is in the session. Or through Ordnance if the House is not in session.
Statement 3 is incorrect: The Union finance secretary (not the cabinet secretary) holds the fund on behalf of the President of India.
