Assam govt proposes to increase Contingency Fund corpus to Rs 2,000cr

Guwahati, Mar 22 (PTI) The Assam government on Tuesday introduced a bill in the state assembly to increase the corpus of Contingency Fund to Rs 2,000 crore from the existing Rs 200 crore to meet expenses of unforeseen events.

Finance Minister Ajanta Neog introduced “The Assam Contingency Fund (Augmentation of Corpus) Bill, 2022” on the floor of the House.

In the statement of objects and reasons, she said that a “sizeable” amount of money is required almost every year to meet expenditures related to natural calamities and other unforeseen events.

As the expenditure is unforeseen in nature and no budget provision can be made, hence the need for permanent augmentation of Contingency Fund was felt, she said.

…it is proposed to raise the corpus of Contingency Fund to Rs 2,000 crore from Rs 200 crore, Neog added.

The fund will be administered by the finance department, she said.

It was created as per provision of the Assam Contingency Fund Act, 1950, to meet unforeseen expenditures that are not provided in the budget and which cannot wait for a supplementary provision in the next session of the assembly.