Consider the following statements:

1. Contingency Fund of India has been established by an act of the parliament. 

2. The advances from the Contingency Fund of Indian are re-appropriated from the Public Accounts of India. 

Which of the statements given above is/are correct? 

a) 1 only 

b) 2 only 

c) 1 and 3 only 

d) 1 and 2 only

Solution: 

• Contingency Fund of India was established by an act of the parliament. 
• The Parliament has enacted the Contingency Fund of India Act in 1950. 
• The fund is held by the finance secretary on behalf of the president. 
• The money spent from Contingency Fund is again re-appropriated from. 
• Consolidated Fund, which needs parliamentary approval. 

Ans: (a)