Institutions

Federal Financial Procedures

How budgets, appropriations, and fiscal controls operate at the federal level.

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Article 119. Estimates of Revenues and Expenditures

(1)The Minister for Finance of the Government of Nepal shall, in respect of every fiscal year, lay before the joint sitting of both Houses of the Federal Parliament an annual estimate setting out, inter alia, the following matters:-
(a)Estimate of revenues;
(b)Moneys required to meet the charges on the Federal Consolidated Fund; and
(c)Moneys required to meet the expenditure to be provided for in the Federal Appropriation Act. www.lawcommission.gov.np
(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 fiscal year and particulars of whether or not the objectives of the expenses have been achieved.
(3)The Minister for Finance of the Government of Nepal shall lay before the

Federal Parliament an estimate of revenues and expenditures referred to in clause (1) on the 15th of Jeshta (mid May) each year.

Article 120. Appropriation Act

The moneys to be spent under an Appropriation Act shall be specified under concerned heads in the Appropriation Bill.

Article 121. Supplementary Estimate

(1)The Minister for Finance of the Government of Nepal may lay before the House of Representatives a supplementary estimate in case it is found in any fiscal year:-
(a)That the sum authorized to be spent for a particular service by the Appropriation Act for the current fiscal year is insufficient, or that a need has arisen for expenditures on some new service not provided for in the Appropriation Act for that year; or
(b)That the expenditures made during that fiscal year are in excess of the amount authorized by the Appropriation Act.
(2)The sums included in the supplementary estimate shall be specified under the related heads in a Supplementary Appropriation Bill.

Article 122. Votes on Account

(1)Notwithstanding anything contained elsewhere in this Part, a portion of the expenditure estimated for the fiscal year may, when an Appropriation Bill is under consideration, be incurred in advance, as provided for in Federal Act.
(2)No Vote on Account Bill shall be introduced until the estimates of revenues and expenditures have been laid pursuant to Article 119, and the sums involved in the

Vote on Account shall not exceed one-third of the estimate of expenditures for the fiscal year.

(3)The expenditures incurred in accordance with the Federal Vote on Account

Act shall be included in the Appropriation Bill.

Article 123. Votes of Credit

Notwithstanding anything contained elsewhere in this Part, in case owing to an emergency due to either natural causes or a threat of external aggression www.lawcommission.gov.np or internal disturbances 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 pursuant to clause (1) of Article 119, the Minister for Finance of the Government of Nepal may lay before the House of Representatives a Vote of Credit Bill giving only a statement of expenditures.

Article 124. Federal Contingency Fund

(1)A Federal Act may create a fund to be known as the contingency fund into which such moneys as may be determined by the Federal Act shall be deposited from time to time.
(2)The fund referred to in the clause (1) shall be under the control of the

Government of Nepal and may meet any unforeseen expenditure out of such fund.

(3)The amount of the expenditure referred to in clause (2) shall be reimbursed as soon as possible as provided for in the Federal Act.

Article 125. Act relating to Financial Procedures

Matters relating to the transfer of moneys appropriated by a Federal Act from one head to another and other financial procedures shall be as provided for in the Federal Act. www.lawcommission.gov.np

Article 126. Courts to Exercise Powers relating to Justice

(1)Powers relating to justice in Nepal shall be exercised by courts and other judicial institutions in accordance with this Constitution, other laws and recognized principles of justice.
(2)All shall abide by the orders or decisions made by courts in the course of hearing of lawsuit.

Article 127. Courts

(1)There shall be the following courts in Nepal:-
(a)Supreme Court;
(b)High Court; and
(c)District Court.
(2)In addition to the courts referred to in clause (1), judicial institutions may be constituted at the local level to try cases under law or other institutions as required may be formed to pursue alternative dispute resolution methods.

Article 128. Supreme Court

(1)There shall be a Supreme Court of Nepal.
(2)The Supreme Court shall be a court of record. All courts and judicial institutions shall, except as otherwise provided in this Constitution, be under the

Supreme Court. The Supreme Court shall have the final authority to interpret this Constitution and laws.

(3)The Supreme Court may inspect, supervise and give necessary directives to, itself and courts, specialized courts or other judicial institutions under its jurisdiction, on matters relating to administration of justice or management.
(4)All shall abide by any interpretation of the Constitution or a law made by or any legal principle laid down by the Supreme Court in the course of hearing a lawsuit. In case anyone makes obstruction in the dispensation of justice or disregard any order or judgment handed down by it or any of its subordinate courts, the

Supreme Court may, in accordance with law, initiate proceedings of contempt and impose punishment therefor. www.lawcommission.gov.np