<div>
	As the name suggests, the Contingency Fund of India is the emergency fund for the nation. Constituted under Article 267(1) of the Indian Constitution, the Contingency fund of India is used at a time when there is a crisis in the nation &mdash; a natural calamity, for instance &mdash; and money is required to deal with it. The Union government has its own contingency fund with a corpus of Rs 500 crore.</div>
<div>
	&nbsp;</div>
<div>
	In 2005, the amount of the fund was raised from Rs 5 crore to Rs 500 crore. States can also opt to have their own contingency funds. The contingency fund of the Union government is at the disposal of the President of India, who releases the funds on request of the Union Cabinet, which later gets an approval from Parliament. A Parliament approval is mandatory.</div>
<div>
	&nbsp;</div>
<div>
	After the emergency has been dealt with, the fund is reimbursed to its full capacity of Rs 500 crore. This required money comes from the Consolidated Fund of India.</div>

RELATED BUDGET TERMS

Learn what is meant by Contingency Fund of India, its Definition and more budget related news here at Business Standard.

What is Contingency Fund of India, Budget News, Contingency Fund of India Definition

Contingency Fund of India

What is Contingency Fund of India?

<div>
	&nbsp;</div>
<div>
	Among the several government accounts, the Consolidated Fund of India is the most crucial. Constituted under Article 266(1) of the Indian Constitution, the Consolidated Fund of India is the account of the revenue the Government of India receives &mdash; via income tax, Customs, central excise and the non-tax revenue &mdash; and the expenses it makes, excluding exceptional items.</div>
<div>
	&nbsp;</div>
<div>
	Any money raised by the government, including loans through public notifications, treasury bills, and borrowings from foreign governments or international institutions, is always credited to this fund. Likewise, whatever money the Indian government spends &mdash; government expenditure &mdash; is incurred from this account. The government cannot withdraw any fund from this account without the approval of Parliament. Essentially, a sum of Rs 500 crore from Consolidated fund of India is transferred to the Contingency Fund of India for dealing with any emergency situation. However, if the contingency fund is not used by the government in a given financial year, there is no requirement to add more to it.</div>
<div>
	&nbsp;</div>
<div>
	<strong>Disbursement charged on Consolidated Fund of India</strong></div>
<div>
	&nbsp;</div>
<div>
	Payment of interests, loans and advances to state governments, internal debt of the central government, and grants-in-aid to state governments account for the bulk of expenditure.</div>
<div>
	&nbsp;</div>

Learn what is meant by Consolidated Fund of India, its Definition and more budget related news here at Business Standard.