NEW DELHI: In the coming budget session for financial year 2019-20, the Delhi government plans to increase the contingency fund amount from current Rs 10 crore to Rs 100 crore.
According to officials privy to the development, this is being done keeping in mind the changing scenarios when different departments need some amount urgently for developmental projects and in that case, Rs 10 crore is far too less.
This contingency fund is created for a situation when a department has the budget marked for the entire year depending on the past, present and future planned projects but in between some work needs urgent fund allocation but for the same is not available.
In such a scenario, the respective department seeks approval from the finance department, which can allot the required amount to the department in case of urgent need. Officials expressed happiness over the decision to increase contingncy fund by 10 times. They said they expect more financial help in the future.
Contingency Fund is created as an imprest account to meet some urgent or unforeseen expenditure of the government. This fund was constituted by the government under Article 267 of the Constitution of India.