Karnataka approves enhancing contingency fund limit from Rs 500 crore to Rs 2,500 crore 

Team Udayavani, Jun 22, 2021, 1:00 PM IST

Bengaluru: For the second consecutive year,  the state government has decided to enhance the contingency fund because of the Covid pandemic. The government agreed to pass an ordinance to increase the fund from the existing Rs 500 crore to Rs 2,500 crore.

Last year, the government had enhanced the contingency fund limit from Rs 80 crore to Rs 500 crore, citing the Covid pandemic.

Under the contingency fund, the government had room to spend up to Rs 500 crore without budget provision, this time due to COVID-19 second wave government decided to increase the limit to Rs 2,500 crore.

The contingency fund facilitates expenditure that has not been accounted for in the budget during a fiscal year. The new ordinance will facilitate additional funds to be directed towards the economic relief package.