Which of the following Articles of the Indian Constitution is related to Contingency Fund ?
- (a)Article 265
- (b)Article 266
- (c)Article 267
- (d)Article 268
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.
- (a)Article 265 — 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)Article 266 — 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)Article 268 — 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.
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.
Articles 265-268 sit consecutively in Part XII (Finance), so the question tests precise article-to-provision recall. The classic trap is swapping Article 266 (Consolidated Fund) with Article 267 (Contingency Fund).
- Article 267 provides for a Contingency Fund of India and a Contingency Fund for each State.
- It is an imprest at the disposal of the President/Governor to meet urgent, unforeseen expenditure.
- Spending from it needs subsequent legislative approval, after which it is recouped from the Consolidated Fund.
- Adjacent finance articles: 265 (no tax without authority of law), 266 (Consolidated Fund & Public Account), 268 (Union duties collected by States).
Article 267 is the Contingency Fund; do not confuse it with the Consolidated Fund under Article 266.
- Swapping Article 266 (Consolidated Fund) with Article 267 (Contingency Fund)
- Believing Contingency Fund withdrawals need prior parliamentary sanction — approval actually comes afterwards
Article-to-provision matching within 265-268, or 'which fund is at the President's disposal for unforeseen expenditure' (the Contingency Fund).
With reference to Indian Public Finance, consider the following statements: 1. Disbursements from Public Accounts of India are subject to the Vote of Parliament. 2. The Indian Constitution provides for the establishment of a Consolidated Fund, a Public Account and a Contingency Fund for each State. 3. Appropriations and disbursements under the Railway Budget are subject to the same form of Parliamentary control as other appropriations and disbursements. Which of these statements given above are correct?
- (a) 1 and 2
- (b) 2 and 3
- (c) 1 and 3
- (d) 1, 2 and 3
Answer(b) 2 and 3
Shared concept — the constitutional funds, including the Contingency Fund for each State established under Articles 266 & 267.
- practice — not a real PYQ
The Consolidated Fund of India is provided for under which Article of the Constitution?
- (a)Article 265
- (b)Article 266
- (c)Article 267
- (d)Article 268
Answer(b) Article 266 — it also covers the Public Account of India.
- practice — not a real PYQ
The Contingency Fund of India is placed at the disposal of the:
- (a)Prime Minister
- (b)Finance Minister
- (c)President
- (d)Comptroller and Auditor General
Answer(c) President — to meet urgent, unforeseen expenditure, subject to later parliamentary approval.