Which of the following Articles of the Indian Constitution is related to Contingency Fund ?

Question

UnlockIAS · Accepted Answer

Correct — C, Article 267. Article 267 empowers Parliament (and each State legislature) to establish a Contingency Fund — an imprest placed at the disposal of the President (or the Governor for a State) to meet urgent, unforeseen expenditure pending authorisation by the legislature. The Contingency Fund of India itself was set up under the Contingency Fund of India Act, 1950.

Why the other options are wrong — (a) Wrong — Article 265 provides that no tax shall be levied or collected except by authority of law; it is about the legality of taxation, not the Contingency Fund.  (b) Wrong — Article 266 provides for the Consolidated Fund of India and the Public Account of India (and their State counterparts), not the Contingency Fund. This is the option most often confused with 267.  (d) Wrong — Article 268 deals with duties that are levied by the Union but collected and appropriated by the States (e.g. stamp duties); it has nothing to do with the Contingency Fund.

Concept: The Constitution's finance chapter creates three pools of government money: the Consolidated Fund and the Public Account (Article 266) and the Contingency Fund (Article 267). The Contingency Fund is an imprest (a standing advance) held on behalf of the President to meet sudden, unforeseen expenditure; money drawn from it is later recouped from the Consolidated Fund once Parliament authorises the spending.

State PCS 2021 Q7 — Polity & Governance PYQ with Answer

State PCS 2021 Q7 — Polity & Governance PYQ with Answer