Which of the following statements regarding Contingency Fund of India are correct 1 It aims to facil...........

Indian Political System(RAS) Union - Executive, Legisture

Which of the following statements regarding Contingency Fund of India are correct?

1. It aims to facilitate meeting of urgent unforeseen expenditure by the government without authorization from parliament.

2. Amount from Consolidated Fund of India is used to recoup the Contingency Fund of India.

3. The fund is held by the fi nance secretary on behalf of President of India.

Select the correct answer using the code given below:

1 and 2 only

2 and 3 only

1, 2 and 3

None of the above

Contingency fund of India:

It aims to facilitate meeting of urgent unforeseen expenditure by the government, pending authorization from Parliament.
The Constitution authorized the Parliament to establish a ‘Contingency Fund of India’, into which amounts determined by law are paid from time to time. Accordingly, the Parliament enacted the contingency fund of India Act in 1950.
This fund is placed at the disposal of the president, and he can make advances out of it to meet unforeseen expenditure pending its authorization by the Parliament.
Parliamentary approval for such unforeseen expenditure is obtained ex-post-facto and an equivalent amount is drawn from consolidated fund of India to recoup the Contingency fund of India after such an ex-post-facto approval.
The fund is held by the fi nance secretary on behalf of the President.
Like the public account of India, it is also operated by executive action.