Contingency Fund of India
Article 267 of the Constitution authorises the existence of a Contingency Fund of India
which is an imprest placed at the disposal of the President of India to facilitate meeting
of urgent unforeseen expenditure by the Government pending authorization from the
Parliament. Parliamentary approval for such unforeseen expenditure is obtained, expost-
facto, and an equivalent amount is drawn from the Consolidated Fund to recoup
the Contingency Fund after such ex-post-facto approval. The corpus of the Contingency
Fund as authorized by Parliament presently stands at `500 crore.
Moneys held by Government in trust are kept in the Public Account. The Public Account
draws its existence from Article 266 of the Constitution of India. Provident Funds, Small
Savings collections, income of Government set apart for expenditure on specific objects
such as road development, primary education, other Reserve/Special Funds etc., are
examples of moneys kept in the Public Account. Public Account funds that do not
belong to the Government and have to be finally paid back to the persons and authorities,
who deposited them, do not require Parliamentary authorisation for withdrawals. The
approval of the Parliament is obtained when amounts are withdrawn from the
Consolidated Fund and kept in the Public Account for expenditure on specific objects.
The actual expenditure on the specific object is again submitted for vote of the Parliament
for withdrawal from the Public Account for incurring expenditure on the specific objects.