Para 18.3.11 — CAM
Original Rule Text
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?▼
What is the difference between Contingency Fund advance and excess expenditure under GFR?▼
Can PAOs override PFMS budgetary ceilings?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.