Contingency Fund
Article 267 — Contingency Fund
Contingency Fund in the nature of an imprest to be entitled “the Contingency Fund of India” into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the President to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by Parliament by law under article 115 or article 116.
(2) The Legislature of a State may by law establish a Contingency Fund in the nature of an imprest to be entitled “the Contingency Fund of the State” into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the Governor 1*** of the State to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by the Legislature of the State by law under article 205 or article 206. Distribution of Revenues between the Union and the States
Plain English Summary
This article deals with emergency money reserves, called Contingency Funds, for both the central government (India) and state governments. These funds allow the President or Governors to make immediate payments for unexpected expenses that need approval from Parliament or the State Legislature later.
Key Points
- Contingency Fund of India: This fund is managed by the President and used for unforeseen expenses pending parliamentary authorization.
- Contingency Fund of the State: Each state can establish its own fund, managed by the Governor, for unforeseen state expenditures pending legislative approval.
- Purpose: The funds are meant to cover unexpected costs that arise suddenly.
- Authorization: Advances from these funds require prior authorization by the respective Parliament or State Legislature.
Why It Matters
It provides a financial safety net, ensuring that urgent public needs can be met quickly without waiting for lengthy legislative processes to approve every single expenditure immediately.
Landmark Judgements
No major landmark judgements.