Govt tweaks spending norms for Contingency Fund of India

The government has tweaked spending norms for Contingency Fund of India, allowing 40 per cent of the total corpus to be placed at disposal of the Expenditure Secretary.

Budget 2021-22 proposed to enhance the Contingency Fund of India from Rs 500 crore to Rs 30,000 crore through Finance Bill.

“An amount equivalent to 40 per cent of the Fund corpus shall be placed at the disposal of the Secretary, Ministry of Finance, Department of Expenditure for the purpose of meeting unforeseen expenditure, and beyond this limit, all further Contingency Fund releases shall be made with the approval of Secretary to the Government of India, Department of Economic Affairs, after the approval of Secretary to the Government of India, Department of Expenditure, a notification said.

The fund is held by the Department of Economic Affairs on behalf of the President of India and it can be operated by executive action. The Contingency Fund of India exists for disasters and related unforeseen expenditures.

The fund can be increased through a Finance Bill when Parliament is in the session. Or through Ordinance if the House is not in session and situation warrants. Withdrawal from the fund takes place with the approval of the Secretary of Department of Economic Affairs, in terms of the Contingency Fund of India Act, 1950.

Applications for advances required shall be made to the Expenditure Secretary and applications for advances of new loans shall be made to the Economic Affairs Secretary, the notification added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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