The government has tweaked the spending norms for the Contingency Fund of India, allowing 40 per cent of the total corpus to be placed at the disposal of the expenditure secretary.

The government had raised the size of the fund to Rs 30,000 crore from Rs 500 crore in the last budget.

Beyond the 40 per cent limit, all releases from the fund will require the approval of the expenditure secretary in addition to the economic affairs secretary’s approval.

Officials claimed the move would ensure greater administrative convenience for the government.

The fund is normally used where there has not been any prior budgetary sanction, with decisions mainly taken by the expenditure department.

The new norm replaces an existing provision that allots a certain portion to the railway ministry.

The thinking behind the decision seems to be the railways will now get funds for unforeseen circumstances only from the finance ministry — as the rail budget is art of the general budget.

In government accounts, the Contingency Fund has a single Major Head to accommodate all transactions of the fund. Article 267 prescribes setting up of a Contingency Fund. It is placed at the disposal of the President to enable advances to be made by him out of such a Fund for the purposes of meeting unforeseen expenditure. The President releases the funds on request of the Union Cabinet at a time when there is a crisis, such as a natural disaster.

Any expenditure incurred from this fund requires a subsequent authorisation from the Parliament.

New norm

• 40% of fund at disposal of expenditure secretary

• Beyond this, any expense requires approval of expenditure secretary and economic affairs secretary