Govt tweaks spending norms for Contingency Fund

Jan 26, 2022
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The federal government has tweaked spending norms for Contingency Fund of India, permitting 40 per cent of the entire corpus to be positioned at disposal of the Expenditure Secretary.

Funds 2021-22 proposed to boost the Contingency Fund of India from Rs 500 crore to Rs 30,000 crore by means of Finance Invoice.

“An quantity equal to 40 per cent of the Fund corpus shall be positioned on the disposal of the Secretary, Ministry of Finance, Division of Expenditure for the aim of assembly unexpected expenditure, and past this restrict, all additional Contingency Fund releases shall be made with the approval of Secretary to the Authorities of India, Division of Financial Affairs, after the approval of Secretary to the Authorities of India, Division of Expenditure,” a notification mentioned.

The fund is held by the Division of Financial Affairs on behalf of the President of India and it may be operated by government motion. The Contingency Fund of India exists for disasters and associated unexpected expenditures.

The fund will be elevated by means of a Finance Invoice when Parliament is within the session. Or by means of Ordinance if the Home shouldn’t be in session and scenario warrants. Withdrawal from the fund takes place with the approval of the Secretary of Division of Financial Affairs, when it comes to the Contingency Fund of India Act, 1950.

Purposes for advances required shall be made to the Expenditure Secretary and functions for advances of latest loans shall be made to the Financial Affairs Secretary, the notification added.


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