Consider the following statements in the context of Contingency Fund of India:

1. The corpus of the Contingency Fund of India is Rs 30,000 crore. 

2. The fund is held by the Union Finance Secretary on behalf of the President. 

3. Any amount withdrawn from the fund is returned to it from the Public Account of India. 

Which of the statements given above is/are correct? 

a) 1 and 2 only 

b) 2 and 3 only 

c) 1 and 3 only 

d) 1, 2 and 3

Solution: 

• The Contingency Fund of the Union government has a corpus of Rs 30,000 crore. 
• Constituted under Article 267(1) of the Indian Constitution, the fund is used at a time when there is a crisis in the nation and money is required to deal with it. 
• This fund is held by the finance secretary on behalf of the President. 
• This fund is placed at the disposal of the President, and he can make advances out of it to meet unforeseen expenditure pending its authorisation by the Parliament. 
• Like the Public Account of India, it is also operated by executive action. 
• Any expenditure incurred from this fund requires a subsequent approval from the Parliament and the amount withdrawn is returned to the fund from the Consolidated Fund and not the Public Account of India. 
• After the emergency has been dealt with, the fund is reimbursed to its full capacity. 

Ans: (a)