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Part -16 State Financial Procedures

State Financial Procedures
203. No tax to be levied or loan to be raised:

(1) No tax shall be levied and collected
in a State except in accordance with law.
(2) No loan shall be raised and guarantee given by the State Government
except as provided for in the Federal law.

204. State Consolidated Fund: Except for the revenues of trusts (Guthi), all revenues
received by the State Government, all loans raised on the security of revenues, all
moneys received in repayment of any loans made under the authority of any State
Act and any mounts of grants or loans received from the Government of Nepal
shall, except as otherwise provided for in the State Act, be credited to a State
Government Fund to be known as the State Consolidated Fund.

205. Expenditures from State Consolidated Fund or State Government Fund: No
expenditure shall be incurred out of the State Consolidated Fund or any other State
Government Fund except the following:

(a) moneys charged on the State Consolidated Fund,
(b) moneys required to meet the expenditure under an Appropriation
Act,
(c) advance moneys authorized by an Act required to meet expenditures,
when an Appropriation Bill is under consideration, or
(d) expenditures to be incurred in extraordinary circumstances under a
Vote of Credit Act which contains only a description of expenditures.
Provided that matters relating to the State Contingency Fund shall be
in accordance with Article 212.

206. Expenditures chargeable on State Consolidated Fund: The expenditures
relating to the following matters shall be charged on the State Consolidated Fund,
and approval of the State Assembly shall not be required for such expenditures:

(a) the amount required as remuneration and facilities payable to the
State Speaker and the State Deputy Speaker,
(b) the amount required as remuneration and facilities payable to the
Chairperson and members of the State Public Service Commission,
(c) all charges relating to debts for which the State Government is
liable,
(d) any sum required to satisfy any judgment or decree made by a court
against the State Government, and
(e) any other sum specified by a State law to be chargeable on the State
Consolidated Fund.

207. Estimates of revenues and expenditures:

(1) The State Minister for Finance
shall, in respect of every financial year, lay before the State Assembly an annual
estimate setting out, inter alia, the following matters:
(a) an estimate of revenues,
(b) the moneys required to meet the charges on the State Consolidated
Fund, and
(c) the moneys required to meet the expenditure to be provided for by a
State Appropriation Act.
(2) The annual estimate to be laid pursuant to clause (1) shall also be
accompanied by a statement of the expenses allocated to every Ministry in the
previous financial year and particulars of whether the objectives of the expenses
have been achieved.

208. State Appropriation Act: The moneys required to meet the expenditure to be
provided for by any State Appropriation Act shall be specified under appropriate
heads in an Appropriation Bill.

209. Supplementary estimates:

(1) The State Minister for Finance may lay before the
State Assembly a supplementary estimate if it is found in any financial year,-

(a) that the sum authorized to be spent for a particular service by the
State Appropriation Act for the current financial year is insufficient,
or that a need has arisen for expenditures upon some new service not
provided for in the State Appropriation Act for that year, or

(b) that the expenditures made during that financial year are in excess of
the amount authorized by the State Appropriation Act.

(2) The sums included in the supplementary estimates shall be specified
under the heads in a Supplementary Appropriation Bill.

210. Votes on Account:

(1) Notwithstanding anything contained elsewhere in this Part,
a portion of the expenditure estimated for the financial year may, when aState
Appropriation Bill is under consideration, be incurred in advance under a State
Act.

(2) A Vote on Account Bill shall not be introduced until the estimates of
revenues and expenditures have been laid in accordance with Article 207, and the
sums involved in the Vote on Account shall not exceed one-third of the estimate of
expenditures for the financial year.

(3) The expenditures incurred in accordance with the State Vote on
Account Act shall be included in the State Appropriation Bill.
211. Votes of Credit: Notwithstanding anything contained elsewhere in this Part, if
owing to an emergency due to natural causes or other reasons, it appears to be
impractical or inexpedient in view of the security or interest of the State to specify
the details required under clause (1) of Article 207, the State Minister for Finance
may lay before the State Assembly a Vote of Credit Bill giving only a statement of
expenditures.

212. State Contingency Fund:

(1) A State Act may create a Fund to be known as the
State Contingency Fund into which shall be paid from time to time such moneys
as may be determined by the State Act.

(2) The Fund under clause (1) shall be under the control of the State
Government. Any unforeseen expenditure may be met out of such Fund by the
State Government.

(3) The amount of the expenditure under clause (2) shall be reimbursed
as soon as possible by the State Act.

213. Act relating to financial procedures: Matters relating to the transfer of moneys appropriated by the State Act from one head to another and other financial
procedures shall be as provided for in the State Act.

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