Which of the following funds is being used by the Government of India to meet the unforeseen expenses?
The correct answer is Contingency Fund.
- Contingency Fund is being used by the Government of India to meet the unforeseen expenses.
Additional Information
- Consolidated Fund of India:
- This is the most important of all accounts of the government.
- This fund is filled by Direct and indirect taxes Loans taken by the Indian government, Returning of loans/interests of loans to the government by anyone/agency that has taken it.
- The government meets all its expenditure from this fund.
- The government needs parliamentary approval to withdraw money from this fund.
- The provision for this fund is given in Article 266 (1) of the Constitution of India.
- Each state can have its own Consolidated Fund of the state with similar provisions.
- The Comptroller and Auditor General of India audit these funds and reports to the relevant legislatures on their management.
- Contingency Fund of India:
- Provision for this fund is made in Article 267 (1) of the Constitution of India.
- Its corpus is Rs. 500 crores.
- The Secretary of, Finance Ministry holds this fund on behalf of the President of India.
- This fund is used to meet unexpected or unforeseen expenditure.
- Contingency Fund is being used by the Government of India to meet the unforeseen expenses
- Each state can have its own contingency fund.
- Public Accounts of India:
- This is constituted under Article 266 (2) of the Constitution.
- All other public money (other than those covered under the Consolidated Fund of India) received by or on behalf of the Indian Government are credited to this account/fund.
- This is made up of Bank savings account of the various ministries/departments, National small savings fund, defence fund, National Investment Fund (money earned from disinvestment), National Calamity & Contingency Fund (NCCF) (for Disaster Management), Provident fund, Postal insurance, etc.



