Question

The provision for the Contingency Fund of India as well as for each state has been made under _____
A. Article 267
B. Article 270
C. Parliamentary legislation
D. Presidential order

Answer 1

Hint: Contingency Fund enables the Government to satisfy unforeseen expenditure, which can't wait for approval of the Parliament.

Complete answer:
Parliament enacted the contingency fund of India Act in 1950. It's nature is to make money (money maintained for a specific purpose). Now let’s under which provision Contingency Fund of India as well as for each state has been made.
The Contingency Fund of India is the emergency fund for the country. Constituted under Article 267(1) of the Indian Constitution.
Article 270 permitted mandatory sharing of the net proceeds of income tax levied and collected by the Center government with the States.
The basic function of Parliament is to form laws. All legislative proposals need to be brought within the form of Bills before Parliament. A Bill is a statute in draft and can't become law unless it's received the approval of both the Houses of Parliament and then assent of the President of India.
Any executive order which is through the President of India is called a Presidential order. An executive order is one which doesn't require the involvement of the Parliament and can be passed by the government itself.

Therefore the correct answer is A. i.e., Article 267.

Note: Contingency fund was constituted by the government under Article 267 of the Constitution of India. This fund is at the disposal of the President. A contingency fund is cash or other assets reserved to deal with unforeseen circumstances or losses in a business. The role of the contingency fund is to enhance a company's financial stability by developing a security net that the firm can use to fill emergency requirements for the county.