The Contingency Fund of an Indian State is held by _____.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3: Governor.
Explanation:
Under Article 267(2) of the Indian Constitution, the Contingency Fund of the State is placed at the disposal of the State Governor. This fund is utilized, with the Governor's permission, to meet any unforeseen expenditure until such time as it is authorized by the State Legislature. On behalf of the Governor, the State Finance Secretary administers this fund.
Additional Facts:
- Contingency Fund of India (Article 267-1): This is placed at the disposal of the President and is used to meet the unforeseen expenditures of the Central Government.
- Consolidated Fund: Under Article 266(1), all receipts and expenditures of the State are routed through this fund. The approval of the Legislature is mandatory for this.
- Public Account: Under Article 266(2), this comprises funds that do not belong to the government but are held by the government in trust (e.g., PF).
- Purpose of the Contingency Fund: To ensure the immediate availability of funds during natural disasters or emergency situations.
Potential Questions for Upcoming Exams:
Question: Under which Article of the Indian Constitution is the provision for a Contingency Fund for the States made?
Answer: Article 267(2).
Question: Whose permission is required to withdraw funds from the Consolidated Fund of India?
Answer: The Parliament of India.
Question: Which official administers the State's Contingency Fund on behalf of the Governor?
Answer: The State Finance Secretary.