Constitution Section 267 — Contingency Fund

Part XII — FINANCE, PROPERTY, CONTRACTS AND SUITS — General

Constitutional

Summary

Parliament can create a special fund called the Contingency Fund of India, which works like a fixed advance account. Money will be added to this fund from time to time as decided by law, and the President can use it to make advances for unexpected expenses before Parliament formally approves those expenses under certain articles. Similarly, a state legislature can create a Contingency Fund of the State, which works the same way, and the Governor can use it for unforeseen state expenses before the state legislature approves them under the relevant articles.

Official Text

(1) Parliament may by law establish a 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 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