Procedure in Financial Matters
Article
202 Annual financial statement
(1) The Governor shall
in respect of every financial year cause to be laid before the House
or Houses of the Legislature of the State a statement of the
estimated receipts and expenditure of the State for that year, in
this Part referred to as the annual financial statement.
(2) The
estimates of expenditure embodied in the annual financial statement
shall show separately -
(a) the sums required to meet
expenditure described by this Constitution as expenditure charged
upon the Consolidated Fund of the State; and
(b) the sums
required to meet other expenditure proposed to be made from the
Consolidated Fund of the State, and shall distinguish expenditure on
revenue account from other expenditure.
(3) The following
expenditure shall be expenditure charged on the Consolidated Fund of
each State -
(a) the emoluments and allowances of the Governor
and other expenditure relating to his office;
(b) the salaries
and allowances of the Speaker and the Deputy Speaker of the
Legislative Assembly and, in the case of State having a Legislative
Council, also of the Chairman and the Deputy Chairman of the
Legislative Council;
(c) debt charges for which the State is
liable including interest, sinking fund charges and redemption
charges, and other expenditure relating to the raising of loans and
the service and redemption of debt;
(d) expenditure in respect
of the salaries and allowances of Judges of any High Court;
(e)
any sums required to satisfy any judgment, decree or award of any
court or arbitral tribunal;
(f) any other expenditure declared
by this Constitution, or by the Legislature of the State by law, to
be so charged.
Article
203 Procedure in Legislature with respect to estimates
(1)
So much of the estimates as relates to expenditure charged upon the
Consolidated Fund of a State shall not be submitted to the vote of
the Legislative Assembly, but nothing in this clause
shall be
construed as preventing the discussion in the Legislature of any of
those estimates.
(2) So much of the said estimates as relates to
other expenditure shall be submitted in the form of demands for
grants to the Legislative Assembly, and the Legislative Assembly
shall have power to assent, or to refuse to assent, to any demand, or
to assent to any demand subject to a reduction of the amount
specified therein.
(3) No demand for a grant shall be made
except on the recommendation of the Governor.
Article
204 Appropriation Bills
(1) As soon as may be after
the grants under article 203 have been made by the Assembly, there
shall be introduced a Bill to provide for the appropriation out of
the Consolidated Fund of the State of all moneys required to meet -
(a) the grants so made by the Assembly; and
(b) the expenditure
charged on the Consolidated Fund of the State but not exceeding in
any case the amount shown in the statement previously laid before the
House or Houses.
(2) No amendment shall be proposed to any such
Bill in the House or either House of the Legislature of the State
which will have the effect of varying the amount or altering the
destination of any grant so made or of varying the amount of any
expenditure charged on the Consolidated Fund of the State, and the
decision of the person presiding as to whether an amendment is
inadmissible under this clause shall be final.
(3) Subject to
the provisions of articles 205 and 206, no money shall be withdrawn
from the Consolidated Fund of the State except under appropriation
made by law passed in accordance with the provisions of this article.
Article
205 Supplementary, additional or excess grants
(1) The
Governor shall - (a) if the amount authorised by any law made in
accordance with the provisions of article 204 to be expended for a
particular service for the current financial year is found to be
insufficient for the purposes of that year or when a need has arisen
during the current financial year for supplementary or additional
expenditure upon some new service not contemplated in the annual
financial statement for that year, or
(b) if any money has been
spent on any service during a financial year in excess of the amount
granted for that service and for that year,
cause to be laid
before the House or the Houses of the Legislature of the State
another statement showing the estimated amount of that expenditure or
cause to be presented to the Legislative Assembly of the State a
demand for such excess, as the case may be.
(2) The provisions
of articles 202, 203 and 204 shall have effect in relation to any
such statement and expenditure or demand and also to any law to be
made authorising the appropriation of moneys out of the Consolidated
Fund of the State to meet such expenditure or the grant in respect of
such demand as they have effect in relation to the annual financial
statement and the expenditure mentioned therein or to a demand for a
grant and the law to be made for the authorisation of appropriation
of moneys out of the Consolidated Fund of the State to meet such
expenditure or grant.
Article
206 Votes on account, votes of credit and exceptional grants
(1)
Notwithstanding anything in the foregoing provisions of this Chapter,
the Legislative Assembly of a State shall have power -
(a) to
make any grant in advance in respect of the estimated expenditure for
a part of any financial year pending the completion of the procedure
prescribed in article 203 for the
voting of such grant and the
passing of the law in accordance with the provisions of article 204
in relation to that expenditure;
(b) to make a grant for meeting
an unexpected demand upon the resources of the State when on account
of the magnitude or the indefinite character of the service the
demand cannot be stated with the details ordinarily given in an
annual financial statement;
(c) to make an exceptional grant
which forms no part of the current service of any financial year,
and
the Legislature of the State shall have power to authorise by law the
withdrawal of moneys from the Consolidated Fund of the State for the
purposes for which the said grants are made.
(2) The provisions
of articles 203 and 204 shall have effect in relation to the making
of any grant under clause (1) and to any law to be made under that
clause as they have effect in relation to the making of a grant with
regard to any expenditure mentioned in the annual financial statement
and the law to be made for the authorisation of appropriation of
moneys out of the Consolidated Fund of the state to meet such
expenditure.
Article
207 Special provisions as to financial Bills
(1) A
Bill or amendment making provision for any of the matters specified
in sub-clauses (a) to (f) of clause (1) of article 199 shall not be
introduced or moved except on the recommendation of the Governor, and
a Bill making such provision shall not be introduced in a Legislative
Council:
Provided that no recommendation shall be required under
this clause for the moving of an amendment making provision for the
reduction or abolition of any tax.
(2) A Bill or amendment shall
not be deemed to make provision for any of the matters aforesaid by
reason only that it provides for the imposition of fines or other
pecuniary penalties, or for the demand or payment of fees for
licenses or fees for services rendered, or by reason that it provides
for the imposition, abolition, remission, alteration or regulation of
any tax by any local authority or body for local purposes.
(3) A
Bill which, if enacted and brought into operation, would involve
expenditure from the Consolidated Fund of a State shall not be passed
by a House of the Legislature of the State unless the Governor has
recommended to that House the consideration of the Bill.
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