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Statement I: The setting of the Contingency Fund of India is mandatory under the Indian constitution for unforeseen expenditure. Statement II: Contingency Fund of India is maintained by the Finance Secretary on behalf of the President.

Statement I: The setting of the Contingency Fund of India is mandatory under the Indian constitution for unforeseen expenditure. Statement II: Contingency Fund of India is maintained by the Finance Secretary on behalf of the President. Correct Answer Statement I is false but statement II is true.

The correct answer is Statement I is false but statement II is true.

Key Points

Article 267 of the constitution says that Parliament may establish a Contingency Fund of India.

  • Setting up of Contingency Fund of India is not mandatory. Hence, statement 1 is false.
  • The fund is placed at the disposal of the President and he can make advances out of it to meet unforeseen expenditure pending the authorization of such expenditure by parliament.
  • The fund is held by the Finance Secretary of India on behalf of the President. Hence, statement 2 is true.
  • It is also operated by executive action only.
  • Parliament enacted the Contingency fund of India Act in the year 1950.

Confusion Points

  • The term may express that the Setting up of the Contingency Fund of India is not mandatory.
  • The second part of the statement is correct. The fund is placed at the disposal of the President and he can make advances out of it to meet unforeseen expenditures.
  • Hence, overall statement 1 is false  

Related Questions

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