What are the consolidated and contingency Funds of India?

Article-266 of the Constitution of India makes a provision to create. “The consolidate fund of India”.

The consolidated fund of India is made of the money received by the Government of India from

i. Revenues;

ii. Issue of treasury bill;

iii. Repayment of loans and advances made by it.

The part of state from taxes and duties are paid to them before depositing the revenue in this fund.

Money can be appropriated from this fund only in accordance with law and for only those purposes which are provided in the constitution.

The contingency fund may be established by Parliament by law under Article 267 of the constitution. It is in the nature of an impress. Such law shall determine sums to be paid in this fund from time to time.

This fund is placed at the disposal of the president of India. He may make advances out of this fund. It is to be used for the purpose of meeting unforeseen expenditures. The expenditure requires authorisation of Parliament by law under Article 115 or 116.