State and Local

State Financial Procedures

State budgeting and fiscal procedure.

Sections10

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Article 204. Provincial Consolidated Fund

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

Article 205. Expenditures from Provincial Consolidated Fund or Provincial Government Fund

No expenditure shall be incurred out of the Provincial Consolidated Fund or any other Provincial Government Fund except the following:-

(a)Moneys charged on the Provincial 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 Provincial Contingency Fund shall be pursuant to Article 212.

Article 206. Expenditures Chargeable on Province Consolidated Fund

The expenditures relating to the following matters shall be charged on the Provincial Consolidated Fund, and approval of the Provincial Assembly shall not be required for such expenditures:-

(a)The amount required as remuneration and facilities payable to the Speaker of Province and the Deputy Speaker of Province; www.lawcommission.gov.np
(b)The amount required as remuneration and facilities payable to the Chairperson and members of the Provincial Public Service Commission;
(c)All charges relating to debts to which the Provincial Government is liable;
(d)Any sum required to satisfy any judgment or decree made by a court against the Provincial Government; and
(e)Any other sum specified by the provincial law to be chargeable on the Province Consolidated Fund.

Article 207. Estimates of Revenues and Expenditures

(1)The Provincial Minister for Finance shall, in respect of every fiscal year, lay before the Provincial 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 Provincial Consolidated Fund; and
(c)The moneys required to meet the expenditure to be provided for by a Provincial 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 fiscal year and particulars of whether or not the objectives of the expenses have been achieved.

Article 208. Provincial Appropriation Act

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

Article 209. Supplementary Estimates

(1)The Provincial Minister for Finance may lay before the Provincial Assembly 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 Provincial Appropriation Act for the current financial year is insufficient, or that a need has arisen for expenditures upon some new www.lawcommission.gov.np service not provided for in the Provincial Appropriation Act for that year; or
(b)That the expenditures made during that fiscal year are in excess of the amount authorized by the Provincial Appropriation Act.
(2)The sums included in the supplementary estimates shall be specified under the heads in a Supplementary Appropriation Bill.

Article 210. Votes on Account

(1)Notwithstanding anything contained elsewhere in this Part, a portion of the expenditure estimated for the fiscal year may, when a Provincial Appropriation Bill is under consideration, be incurred in advance in accordance with a Province Act.
(2)No Vote on Account Bill shall be introduced until the estimates of revenues and expenditures have been laid pursuant to Article 207, 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 Provincial Vote on

Account Act shall be included in the Provincial Appropriation Bill.

Article 211. Votes of Credit

Notwithstanding anything contained elsewhere in this Part, in case owing to an emergency due to natural cause or other reasons, it appears to be impractical or inexpedient in view of the security or interest of the Province to specify the details required pursuant to clause (1) of Article 207, the Provincial Minister for Finance may lay before the Provincial Assembly a Vote of Credit Bill giving only a statement of expenditures.

Article 212. Provincial Contingency Fund

(1)A provincial Act may create a Fund to be known as the Provincial Contingency Fund into which shall be paid from time to time such moneys as may be determined by a provincial Act.
(2)The Fund referred to in clause (1) shall be under the control of the

Provincial Government. Any unforeseen expenditure may be met out of such Fund by the Provincial Government.

(3)The amount of the expenditure referred to in clause (2) shall be reimbursed as soon as possible by a provincial Act. www.lawcommission.gov.np

Article 213. Act relating to Financial Procedures

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