Para 18.3.11 — CAM

CAMaccounts

18.3.11 Advance from Contingency Fund of India

What This Means

The Contingency Fund of India, established under Article 267 of the Constitution, allows the President to make advances for unforeseen expenditure before Parliament authorizes it. The corpus was increased from Rs 500 crore to Rs 30,000 crore through the Finance Act, 2021. With this enlarged corpus, additional funding requests are now preferred from the Contingency Fund instead of authorizing excess expenditure under GFR Rules 61 and 69. After the advance is used, Parliament must be approached for appropriations to recoup the fund, and a Transfer Entry must be made for final expenditure booking.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

1Contingency Fund corpus increased from Rs 500 crore to Rs 30,000 crore via Finance Act, 2021
2Used for unforeseen expenditure pending Parliament's authorization — functions like an imprest
3After spending, Parliament's approval must be obtained through Supplementary Demands to recoup the advance
4Transfer Entry (TE) required for final expenditure booking after appropriation is obtained
5PFMS has built-in budgetary ceiling checks; overriding requires appropriate approvals

Practical Example

A sudden flood disaster requires Rs 200 crore in emergency relief. The Ministry of Home Affairs cannot wait for the next Parliament session. They submit a proposal to Budget Division with justification for Contingency Fund advance. The President sanctions Rs 200 crore from the Contingency Fund. The Ministry spends it on relief operations. In the next session, a Supplementary Demand is presented to Parliament for Rs 200 crore. Once approved, a Transfer Entry recoupes the Contingency Fund and books the expenditure under the disaster relief head.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Why was the Contingency Fund corpus increased so significantly?▼

The increase from Rs 500 crore to Rs 30,000 crore (via Finance Act, 2021) allows the government to meet large unforeseen expenditure needs — such as pandemic response or disaster relief — without resorting to excess expenditure authorizations under GFR Rules 61 and 69.

What is the difference between Contingency Fund advance and excess expenditure under GFR?▼

Contingency Fund advance is sanctioned by the President before spending and later regularized by Parliament. Excess expenditure under GFR (APPENDIX-10) involves spending beyond budgetary ceilings with Finance Ministry approval, to be later regularized. The enlarged Contingency Fund is now the preferred mechanism.

Can PAOs override PFMS budgetary ceilings?▼

PFMS has built-in checks to prevent spending beyond Demand for Grants ceilings. Overriding these ceilings is allowed only with appropriate approvals — such as when Budget Division grants excess expenditure under APPENDIX-10 of GFR, and the Head of Accounting Organization authorizes the PAO to override in PFMS.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Para 18.3.11 — CAM

Original Rule Text

What This Means

Key Points

Practical Example

Frequently Asked Questions

Related Rules