Part XII - Finance • Article

Article 267 Simplified: Contingency Fund

Article 267 creates the 'Contingency Fund.' It is the 'Emergency Pocket' of India. Since Parliament takes time to approve money, what happens if there is a sudden earthquake or war tomorrow? Article 267 allows a special sum of money to be kept ready. The President can spend this money immediately for emergencies without waiting for a long debate, though they must get it approved later.

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

Simple Meaning

Explain Like Ten

A special small piggy bank kept for sudden emergencies like a big flood or a sudden war.

Student Mode

Creation of the Contingency Fund of India to meet unforeseen expenditures pending parliamentary approval.

Example

If a sudden, massive flood happens when Parliament is not in session, the President can immediately release money from this fund to help the victims.

Key Takeaway

A special fund for sudden emergencies that the President can use quickly.

FAQs

Who controls the Contingency Fund?

It is at the disposal of the President of India (or Governor for states).

When is it used?

For urgent, unforeseen spending that cannot wait for Parliament to pass a new law.

Do we have to put the money back?

Yes, after spending, the government must get approval from Parliament to refill the fund.

How much money is in the Contingency Fund?

The amount is decided by Parliament through law (currently set at ₹30,000 Crore).

Quiz

Which fund is for emergencies?

Answer: Contingency Fund

Who operates the national Contingency Fund?

Answer: President

Does withdrawal need immediate voting?

Answer: No

Who decides the size of this fund?

Answer: Parliament