The President or Governor can permanently control how government funds are handled through their own rules.

Their rule-making power is only a stand-in until Parliament or the State Legislature passes a proper law on the subject; the legislature's law always takes precedence once made.

Article 283 creates the Consolidated Fund and Contingency Fund themselves.

Those funds are created and defined by other Articles (like Article 266); Article 283 only deals with the procedures for their custody, deposits, and withdrawals.

The Constitution of India

Article 283

Custody, etc, of Consolidated Funds, Contingency Funds and moneys credited to the public accounts

(1) The custody of the Consolidated Fund of India and the Contingency Fund of India, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of India, their payment into the public account of India and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament, and, until provision in that behalf is so made, shall be regulated by rules made by the President.§

(2) The custody of the Consolidated Fund of a State and the Contingency Fund of a State, the payment of moneys into such Funds, the withdrawal of moneys therefrom, the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of the State, their payment into the public account of the State and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by the Legislature of the State, and, until provision in that behalf is so made, shall be regulated by rules made by the Governor of the State.§

Why this exists

The Constitution sets up the Consolidated Fund, Contingency Fund, and public account to hold government money (Articles 266 and 267), but it needed a mechanism to govern the day-to-day mechanics of custody, deposits, and withdrawals. Rather than fixing rigid procedures in the Constitution itself, the framers left these operational details to ordinary law (by Parliament or State Legislatures) so they could be updated over time, while providing that the President or Governor could make interim rules if no such law existed yet, ensuring the machinery of government finance would never be left ungoverned.

Common misconceptions

Myth: The President or Governor can permanently control how government funds are handled through their own rules.
Fact: Their rule-making power is only a stand-in until Parliament or the State Legislature passes a proper law on the subject; the legislature's law always takes precedence once made.
Myth: Article 283 creates the Consolidated Fund and Contingency Fund themselves.
Fact: Those funds are created and defined by other Articles (like Article 266); Article 283 only deals with the procedures for their custody, deposits, and withdrawals.