Constitutional Law

Article 267 of the Indian Constitution: Contingency Fund of India

JT

Juniorlawyer Team

October 17, 2026 · 4 min read

CConstitutional Law

Article 267 of the Constitution of India provides for a Contingency Fund for the Union and for each State. The Fund lets the executive meet unforeseen expenditure immediately, before Parliament or the State Legislature has authorised it through the normal budget process.

Article 267(1): Contingency Fund of India

Parliament may by law establish a Contingency Fund in the nature of an imprest, called the Contingency Fund of India. Amounts are paid into it as Parliament's law decides. The Fund is placed at the disposal of the President so that advances can be made to meet unforeseen expenditure, pending authorisation of that expenditure by Parliament under Articles 115 or 116.

Parliament established the Fund through the Contingency Fund of India Act, 1950. Under that Act, the Fund is held on behalf of the President by a Secretary to the Government of India in the Ministry of Finance. The size of the corpus is fixed by the Act and has been increased by later amendments.

Article 267(2): Contingency Fund of a State

The Legislature of a State may likewise establish a Contingency Fund of the State, placed at the disposal of the Governor, for advances to meet unforeseen expenditure pending authorisation by the Legislature under Articles 205 or 206.

How the three public funds differ

FundArticlePurpose
Consolidated Fund266(1)Receives government revenues and loans; spending needs legislative appropriation
Public Account266(2)Other public money held by the government, such as deposits and provident funds
Contingency Fund267Imprest for unforeseen expenditure, recouped after legislative approval

An advance from the Contingency Fund is not final spending authority. The expenditure must later be approved by the legislature, and the Fund is then recouped from the Consolidated Fund.

अनुच्छेद 267 क्या है?

अनुच्छेद 267 आकस्मिकता निधि (Contingency Fund) से संबंधित है। संसद कानून द्वारा भारत की आकस्मिकता निधि बना सकती है, जो राष्ट्रपति के अधीन रहती है और अप्रत्याशित खर्चों के लिए अग्रिम राशि देने में उपयोग होती है, जब तक संसद उस खर्च को मंज़ूरी न दे दे। इसी प्रकार राज्य विधानमंडल राज्य की आकस्मिकता निधि बना सकता है, जो राज्यपाल के अधीन रहती है। भारत की आकस्मिकता निधि आकस्मिकता निधि अधिनियम, 1950 द्वारा स्थापित की गई।

Using Article 267

Article 267 is a frequent question in judicial services, civil services and law school examinations, usually alongside Article 266. A strong answer quotes the text, explains the imprest nature of the Fund, names the Contingency Fund of India Act, 1950, and distinguishes the three funds. Read about Article 130 and Article 316, or browse the law guides library.

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