CONTINGENCY FUND OF INDIA.
Normally all expenses incurred by the Government should be met out of consolidated fund of India with the vote of the parliament or Appropriations sanctioned by the President. However, to meet unforeseen contingencies when the expenditures cannot be met out of available grants and the vote of the parliament cannot be obtained due to the same not being in session or dissolved the expenditure is met out of fund created for the purpose under article 267(II) which is known as “Contingency Fund Of India”.
The fund is under the control of President of India. As far as Railways are concerned, Financial Commissioner (Railways) controls the fund. This fund is used as and when the contingency arises. Money can be withdrawn from this fund on an application addressed to the President and is given as an advance which needs recoupment. The amount from this fund can be withdrawn when the parliament is not in session and to meet the unforeseen expenditure, which cannot be met from out of the amount of grant available. As soon as parliament comes to session an “Accommodation bill” is passed and amount is recouped from Consolidated Fund of India.