The authorities has tweaked spending norms for Contingency Fund of India, permitting 40 per cent of the overall corpus to be positioned at disposal of the Expenditure Secretary.
Budget 2021-22 proposed to reinforce the Contingency Fund of India from Rs 500 crore to Rs 30,000 crore by way of Finance Bill.
“An quantity equal to 40 per cent of the Fund corpus shall be positioned on the disposal of the Secretary, Ministry of Finance, Department 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 Government of India, Department of Economic Affairs, after the approval of Secretary to the Government of India, Department of Expenditure, a notification mentioned.
The fund is held by the Department of Economic 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 may be elevated by way of a Finance Bill when Parliament is within the session. Or by way of Ordinance if the House isn’t in session and scenario warrants. Withdrawal from the fund takes place with the approval of the Secretary of Department of Economic Affairs, in phrases of the Contingency Fund of India Act, 1950.
Applications for advances required shall be made to the Expenditure Secretary and purposes for advances of new loans shall be made to the Economic Affairs Secretary, the notification added.
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