Forty percent.

A contingency fund is simply a reserve fund to handle unexpected debts that fall outside the scope of your normal operating budget.

This model of maintaining a reserve currency in case of emergencies to protect against possible losses can be used in a variety of situations.

Governments, private businesses, and even individual households can also create and maintain emergency funds as part of an overall financial operating plan.

Emergency funds are also helpful in times of disaster. In government agencies, emergency funds are usually identified as disaster recovery funds or disaster assistance funds, and the conditions for the use of fund reserves will be clearly defined.

This action makes it possible for local and national governments to provide assistance to citizens and municipalities in the event of a certain type of natural or economic disaster, provided that the event meets the eligibility conditions set out for the fund. Sometimes, the government can set up an emergency fund as a tax

A backup fund for possible losses in income and other sources of income.