Constitution of India · Part XII: Finance, Property, Contracts and Suits · General
Article 267: Contingency Fund
In plain words
Parliament can by law set up a Contingency Fund of India, placed at the President's disposal, to make advances for unforeseen expenditure until Parliament authorises it by law under article 115 or article 116. A State Legislature can set up a Contingency Fund of the State, at the Governor's disposal, in the same way under article 205 or article 206.
A simplified explanation, prepared with AI assistance from the official text below and checked automatically against it for numbers and cross-references. The official text is the law and prevails over this summary. Not legal advice.
Official text
(1) Parliament may by law establish a Contingency Fund in the nature of an imprest to be entitled “the Contingency Fund of India” into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the President to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by Parliament by law under article 115 or article 116.
(2) The Legislature of a State may by law establish a Contingency Fund in the nature of an imprest to be entitled “the Contingency Fund of the State” into which shall be paid from time to time such sums as may be determined by such law, and the said Fund shall be placed at the disposal of the Governor *** of the State to enable advances to be made by him out of such Fund for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by the Legislature of the State by law under article 205 or article 206. Distribution of Revenues between the Union and the
Source: India Code (Legislative Department), the official text of the Constitution of India. As amended up to the Constitution (One Hundred and Sixth Amendment) Act, 2023. Text as on 10 September 2026. Words in square brackets [ ] were inserted or substituted by later amending Acts, and *** marks words omitted by an amendment. The amendment footnotes are not reproduced here. Official text on India Code.
Supreme Court judgments citing the article 267
- Justice K. S. Puttaswamy (Retd.) v. Union of India & Ors.
- S. Subramaniam Balaji v. The Government of Tamil Nadu & Ors.
- M.P.Cement Manufacturers Association v. State of Madhya Pradesh and Ors.
- Saurashtra Cement and Chemical Industries v. Union of India and Ors.
- H. H. Maharajadhiraja Madhav Rao Jiwaji Rao Scindia Bahadur & Ors. v. Union of India