Contingency Fund of India is a constitutionally created mechanism to park the funds for meeting contingency needs of the central government. Article 267 of the Constitution authorizes the Contingency Fund of India to facilitate Government to meet urgent unforeseen expenditure pending authorization from Parliament. Parliamentary approval for such unforeseen expenditure is obtained, post-facto, and an equivalent amount is drawn from the Consolidated Fund to recoup the Contingency Fund. The corpus of the Contingency Fund as authorized by Parliament presently stands at Rs 500 crores.
