New Register here for RBI, SEBI & NABARD strategy workshop! April 9 at 7 PM

    Question

    Consider the following statements regarding Contingency

    Fund of India 1. Currently, the Parliament has authorized a corpus of ₹30000 crore. 2. It is to look for unforeseen expenditures. 3. It is placed at the disposal of Cabinet ministers. Which of the above statements are incorrect?
    A 1 and 2 Correct Answer Incorrect Answer
    B 1 and 3 Correct Answer Incorrect Answer
    C 2 and 3 Correct Answer Incorrect Answer
    D 1, 2 and 3 Correct Answer Incorrect Answer
    E 3 only Correct Answer Incorrect Answer

    Solution

    Article 267 of the Constitution authorizes 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, ex- post-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 30,000 crore.

    Practice Next