Part-19 Local Financial Procedures
Local Financial Procedures
228. No tax to be levied or loan to be raised:
(1) No tax shall be levied and collected
and no loan raised in the Local level except in accordance with law.
(2) The Local level may levy tax by law on matters falling within its
domain without prejudice to national economic policies, carriage of goods and
services, capital and labour market, and the neighbouring State or Local level.
229. Local Consolidated Fund:
(1) Each Village Body and Municipality under the
Local Level shall have one Local Consolidate Fund. All revenues received by the
Village Body or Municipality, any amounts of grants received from the
Government of Nepal and the State Government, all loans raised by the Village
Body and Municipality, and amounts received from other sources shall be credited
to such a Fund.
(2) Matters relating to expenditures from the Local Consolidated Fund
under clause (1) shall be as provided for in the Local law.
230. Estimates of revenues and expenditures of Village Body and Municipality: (1)
The Village Executive and the Municipal Executive shall, subject to this
Constitution, lay an estimate of revenues and expenditures of every financial year
before, and have the estimate passed by, the Village Assembly and the Municipal
Assembly, respectively, as provided for in the Local law.
(2) If, in laying an estimate of revenues and expenditures under clause
(1), the Village Executive or Municipal Executive is required to make a deficit
budget, it must purpose also the sources to meet the deficit as provided for in the
Federal law and the State law.
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