Contingency Fund of the State

Define Contingency Fund of the State?

Ans. Contingency fund of State means 'Fund established under Article 267 (2) of the constitution in the nature of an imprest placed at the disposal of the Governor  to enable him to make advances to meet urgent unforeseen expenditure, pending authorization by Legislature.

                                                                               Approval of the Legislature for such expenditure and for withdrawal of an equivalent amount from the Consolidated fund is subsequently obtained, whereupon the advances from the contingency Fund are recouped to the fund. 

Question Asked in HPFAS (1991, 1995)