📜 Article 267 of the Indian Constitution
Title: Contingency Fund
🔹 Full Text (Simplified):
Article 267 provides for the creation of contingency funds by both the Union and the States to meet unforeseen expenditures.
✅ Breakdown of Article 267:
| Clause | Description |
|---|---|
| Clause (1) | Parliament may by law create a Contingency Fund of India, placed at the disposal of the President. 🔸 The President can use it for urgent or unforeseen expenses when Parliament is not in session. |
| Clause (2) | A State Legislature may create a Contingency Fund of the State, placed at the disposal of the Governor for similar emergency use. |
🧠 What is a Contingency Fund?
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A reserve fund used for urgent and unforeseen expenditure such as:
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Natural disasters
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Emergency relief
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Sudden economic measures
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🏛️ Key Points:
| Feature | Union | State |
|---|---|---|
| Fund Name | Contingency Fund of India | Contingency Fund of [State Name] |
| Created By | Parliament | State Legislature |
| Controlled By | President of India | Governor of the State |
| Usage | For urgent, unforeseen expenses | Same as Union |
| Replenishment | Done through later Parliamentary approval (via Appropriation Bill) | Similar process at State level |
💼 Current Status:
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The Contingency Fund of India was initially ₹50 crore but increased to ₹30,000 crore (as of 2021 amendment).
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States have their own limits based on state laws.
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