Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
  • Home
  • Trending
  • State
  • Metro
  • National
  • International
  • Business
  • Feature
  • Entertainment
  • Sports
  • More..
    • Odisha Special
    • Editorial
    • Opinion
    • Careers
    • Sci-Tech
    • Timeout
    • Horoscope
    • Today’s Pic
  • Video
  • Epaper
  • News in Odia
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

Legality of spending Contingency Fund

Utilising the state Contingency Fund to initiate KALIA scheme was proper; but the Assembly has to approve it later

Updated: January 24th, 2019, 17:48 IST
in Opinion
0
Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

Santosh Kumar Mohapatra


Questions have been raised about the state government’s decision to make use of the contingency fund to implement Krushak Assistance for Livelihood and Income Augmentation (KALIA) scheme. According to reports, about `735 crore was approved from the contingency fund for the KALIA scheme, December 29, 2018. Opposition parties argue that the fund should be utilised solely for emergencies such as natural calamities, while the ruling party has asked, where in the Constitution is it specified that the Contingency Fund should be utilized only in case of emergencies such as natural calamities?
Government accounts, both Central and state, have three parts: Consolidated Funds, Contingency Funds, and Public Account. Consolidated Funds have been formed under provisions of Article 266 (1) of the Constitution. Each state can have its own consolidated fund.
Inflow to this fund is from taxes and non-tax revenues. Loans from issue of treasury bills are also received in this fund. Shares from the central tax pool and grants-in aid, too, come into this account. The government meets expenditures, including loan repayments, from this fund.

Also Read

MS Swaminathan at IARI Wheat Field (2005). (Image credit- mssrf.org)

Farmers’ Scientist

2 years ago

Taming nature

2 years ago

Contingency Fund of each state is established under Article 266 of the Constitution and is placed at the
disposal of the Governor. The corpus varies from state to state as decided by their respective legislatures

Public Account is not constituted of normal receipts of the government. Therefore, parliamentary authorisation is not required for payments from this account. Each state can have a Public Account on similar lines.
Contingency Funds, in turn, are created as imprest accounts, that is, money maintained for a specific purpose. It may be used for urgent expenditure in anticipation that the spending would be approved by the Parliament or the Assembly later.
Contingency Fund of India has been established under Article 267 of the Constitution. The fund is held by the Finance Secretary (Department of Economic Affairs) on behalf of the President of India and it can be operated by executive action.
Similarly, Contingency Fund of each state is established under Article 266 of the Constitution and is placed at the disposal of the Governor. The corpus varies from state to state as decided by their respective legislatures.
The corpus of Odisha Contingency Fund was first enhanced from `150 crore to `400 crore by an amendment in 2008 and it was enhanced further to `1,400 crore by an ordinance July 27, 2018, to meet the state’s share in the centrally-sponsored Swachh Bharat Mission-Gramin (SBM-G).
The state had made a budgetary outlay of `1,000 crore for SBM-G; in it the Centre’s share was to be `600 crore (60 per cent) and the state’s share `400 crore (40 per cent). However, the Centre released `1052.26 crore, which meant the state had to correspondingly match its share with `704.65 crore instead of `400 crore. This sum over and above the budget had to be raised from the Contingency Fund.
So, KALIA scheme is not the first time the state has drawn from the Contingency Fund. There is nothing wrong with Odisha government drawing from the Contingency Fund for KALIA.
Since the Assembly is not in session and there is no budgetary provision for KALIA scheme, the state government had no alternative but to utilise the Contingency Fund through an ordinance, as pressure has been mounting from the Opposition to announce a loan waiver for farmers and the government could not wait till the next Assembly session, particularly as elections are near.
However, the spending still needs to be approved in the Assembly. Fiscal rectitude should not be
ignored.

The writer is an Odisha-based economist. e-Mail: skmohapatra67@gmail.com.

Tags: Contingency FundLegality of spending Contingency FundOpinionORISSA POSTSantosh Kumar Mohapatra
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

 

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

slide 2 to 4 of 30
#MyPaperBagChallenge

Pratik Kumar

December 12, 2019
#MyPaperBagChallenge

Ankita Balabantray

December 12, 2019
#MyPaperBagChallenge

Shreyanshu Bal

December 12, 2019
#MyPaperBagChallenge

Anasuya Sahoo

December 12, 2019
#MyPaperBagChallenge

Faiza Firdous

December 12, 2019
#MyPaperBagChallenge

Nishikant Rout

December 12, 2019
#MyPaperBagChallenge

Pragyan Priyambada

December 12, 2019
#MyPaperBagChallenge

Spinoj Pattnaik

December 12, 2019
#MyPaperBagChallenge

Sipra Mishra

December 12, 2019
#MyPaperBagChallenge

Saishree Satyarupa

December 12, 2019
#MyPaperBagChallenge

Rajashree Manasa Mohanty

December 12, 2019
#MyPaperBagChallenge

Narendra Kumar

December 12, 2019
#MyPaperBagChallenge

Akriti Negi

December 12, 2019
#MyPaperBagChallenge

Parbati Mohanty

December 12, 2019
#MyPaperBagChallenge

Bijswajit Pradhan

December 12, 2019
#MyPaperBagChallenge

Akshaya Kumar Dash

December 12, 2019
#MyPaperBagChallenge

Pratik Kumar Ghibela

December 12, 2019
#MyPaperBagChallenge

Priyasha Pradhan

December 12, 2019
#MyPaperBagChallenge

Priyabrata Mohanty

December 12, 2019
#MyPaperBagChallenge

D Rama Rao

December 12, 2019
#MyPaperBagChallenge

Debasis Mohanty

December 12, 2019
#MyPaperBagChallenge

Sibarama Khotei

December 12, 2019
#MyPaperBagChallenge

Pitabas Tripathy

December 12, 2019
#MyPaperBagChallenge

Manas Samanta

December 12, 2019
#MyPaperBagChallenge

Praptimayee Biswal

December 12, 2019
?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
#MyPaperBagChallenge

Dibya Ranjan Das

December 12, 2019
#MyPaperBagChallenge

Jhili Jena

December 12, 2019
#MyPaperBagChallenge

Adweeti Bhattacharya

December 12, 2019
#MyPaperBagChallenge

Aman Kumar Barisal

December 12, 2019
#MyPaperBagChallenge

Sarmistha Nayak

December 12, 2019
#MyPaperBagChallenge

Pratik Kumar

December 12, 2019
#MyPaperBagChallenge

Ankita Balabantray

December 12, 2019
#MyPaperBagChallenge

Shreyanshu Bal

December 12, 2019
#MyPaperBagChallenge

Anasuya Sahoo

December 12, 2019

Archives

Select Month

    Editorial

    Shouldering Arms

    June 22, 2025

    India has taken it as its responsibility to bring the Voice of the Global South (henceforth VoGS) to the world...

    Read more

    Quiet Scramble

    June 21, 2025

    The Modi government has recently relaxed its rules for selecting joint secretaries to encourage more IAS officers to take on...

    Read more

    Trouble For Iran

    Iran flag
    June 18, 2025

    The escalating conflict between Israel and Iran has plunged the Middle East into deeper turmoil, with ramifications stretching far beyond...

    Read more

    Korean Challenge

    Lee Jae-myung
    June 17, 2025

    The people of South Korea have shown their maturity as votaries of democracy by recently gifting a landslide victory to...

    Read more
    • Home
    • State
    • Metro
    • National
    • International
    • Business
    • Editorial
    • Opinion
    • Sports
    • About Us
    • Advertise
    • Contact Us
    • Jobs
    Developed By Ratna Technology

    © 2024 All rights Reserved by OrissaPOST

    • News in Odia
    • Orissa POST Epaper
    • Video
    • Home
    • Trending
    • Metro
    • State
    • Odisha Special
    • National
    • International
    • Sports
    • Business
    • Editorial
    • Entertainment
    • Horoscope
    • Careers
    • Feature
    • Today’s Pic
    • Opinion
    • Sci-Tech
    • About Us
    • Contact Us
    • Jobs

    © 2024 All rights Reserved by OrissaPOST

      • News in Odia
      • Orissa POST Epaper
      • Video
      • Home
      • Trending
      • Metro
      • State
      • Odisha Special
      • National
      • International
      • Sports
      • Business
      • Editorial
      • Entertainment
      • Horoscope
      • Careers
      • Feature
      • Today’s Pic
      • Opinion
      • Sci-Tech
      • About Us
      • Contact Us
      • Jobs

      © 2024 All rights Reserved by OrissaPOST