What is a contingency fund and why is it so important? Explained
Updated : July 18, 2019 07:33 PM IST
The purpose of the fund is to improve financial security by creating a safety net that can be used to meet emergency expenses as well as reduce the need to use high-interest debt.
The Contingency Fund of India was set up under Article 267(1) of the Indian Constitution.
Article 267(2) of the Indian Constitution authorises state legislatures to set up contingency funds for the states.