Which of the following statements is not correct?

The Legislature of a State may, by law, establish a Contingency Fund in the nature of imprest.

The Contingency Fund of the State shall be placed at the disposal of the Chief Minister of the State.

The fund shall be paid from time to time such sums as may be determined by such law.

The Contingency Fund is meant to enable advances to be made for the purpose of meeting unforeseen expenditure pending authorization of such expenditure by the Legislature.

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Answer is Wrong!

This question was previously asked in

UPSC SO-Steno – 2017

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Statement B is not correct. The Contingency Fund of the State, established under Article 267(2) of the Constitution and relevant state legislation, is placed at the disposal of the Governor of the State, not the Chief Minister. Advances are made from this fund by the Governor for meeting unforeseen expenditure, pending authorization by the State Legislature.

Control over the Contingency Fund of the State is vested in the Governor, who operates it on behalf of the Legislature to provide immediate funds for unforeseen events. The Chief Minister, as head of government, can recommend the use of the fund, but the constitutional authority holding the fund is the Governor.

Statement A is correct; Article 267(2) permits the Legislature of a State to establish a Contingency Fund. Statement C is correct; the sums to be paid into the fund are determined by law. Statement D is correct; the purpose of the Contingency Fund is precisely to enable advances for unforeseen expenditure when the Legislature is not in session or before it can authorize such expenditure.

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