Home The Constitution Part XII Article 267

Art. 267 Part XII: Finance, Property, Contracts and Suits

Contingency Fund

Exact text — Constitution of India

(1) Parliament may by law establish a Contingency Fund in the nature of an imprest to be entitled 'the Contingency Fund of India' into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the President to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by Parliament by law under article 115 or article 116. (2) Similarly, the Legislature of a State may by law establish a Contingency Fund... placed at the disposal of the Governor of the State...

In Plain English

What this Article actually means

This Article creates a smaller standing reserve fund — distinct from the much larger Consolidated Fund — specifically for genuine emergencies requiring immediate spending before Parliament (or a State Legislature) has had time to formally authorise it. The President (or Governor) can draw from it directly, with the expenditure later regularised through the normal legislative approval process.

Why This Matters To You

How it shows up in everyday life

This is why the government can respond quickly to genuine emergencies (like a natural disaster requiring immediate relief funding) without waiting for the full Parliamentary budget approval cycle — the Contingency Fund bridges that gap, with formal legislative approval following afterward.

Read alongside this one

Art. 266 — Consolidated Funds and Public Accounts

Frequently Asked

Quick answers about Article 267

Is the Contingency Fund the same as the Consolidated Fund?

No — the Consolidated Fund holds essentially all government revenue and requires prior legislative approval before spending; the Contingency Fund is a smaller standing reserve for immediate, unforeseen needs, spent first and formally authorised afterward.

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The text above reproduces Article 267 of the Constitution of India as amended to date, for general educational reference. It is public-domain legislative text, but we recommend cross-checking the authoritative version at legislative.gov.in or india.gov.in before relying on it for a legal matter. The explanation, examples and FAQs are general information, not legal advice — consult a qualified advocate for guidance on your specific situation.