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KARNATAKA CONTINGENCY FUND ACT, 1957
KARNATAKA CONTINGENCY FUND ACT, 1957
11 of 1957
1st April, 1957
STATEMENT OF OBJECTS AND REASONS [KARNATAKA ACT No. 11 OF 1957] Karnataka Gazette, Extraordinary, dated 16-3-1957 Karnataka Act No. XXI of 1950, provided for the constitution of a Contingency Fund consisting of a sum of Rs. 30 lakhs for the former State of Karnataka. In view of the formation of the new State of Karnataka, it is necessary to constitute a new Contingency Fund with an amount of rupees one crore. Hence this Bill.
An Act to provide for the establishment of a Contingency Fund for the State of Karnataka. Whereas, clause (2) of Article 267 of the Constitution of India provides that the Legislature of a State may by law establish a Contingency Fund in the nature of an imprest; And whereas, it is expedient to establish such a Contingency Fund for the State of Karnataka; Be it enacted by the Karnataka State Legislature in the Eighth Year of the Republic of India as follows
Section1 Short title
This Act may be called the Karnataka Contingency Fund Act, 1957.
Section2 Establishment of a Contingency Fund
There shall be established for the State of Karnataka a Contingency Fund in the nature of an imprest entitled the Contingency Fund of the State of Karnataka, into which shall be paid from and out of the Consolidated Fund of the State a sum of eighty crores of rupees.
Section3 Custody of the Contingency Fund and withdrawals therefrom
The Contingency Fund of the State of Karnataka shall be held on behalf of the Governor by the Secretary to the Government of Karnataka in the Department of Finance, and no advances shall be made out of such Fund except for the purposes of meeting unforeseen expenditure pending authorisation of such expenditure by the State Legislature under appropriation made by law.
Section4 Power to make rules
For the purpose of carrying out the objects of this Act, the State Government may make rules regulating all matters connected with or ancillary to the custody of, the payment of moneys into and the withdrawal of moneys from, the Contingency Fund of the State of Karnataka.
RULE
KARNATAKA CONTINGENCY FUND RULES, 1957
In exercise of the powers conferred by Section 4 of the Contingency Fund Act, 1957 (Karnataka Act 11 of 1957), the Government of Karnataka hereby make the following rules
Rule1 .
These rules may be called the Karnataka Contingency Fund Rules, 1957.
Rule2 .
In these rules, "Fund" means the Contingency Fund of the State of Karnataka.
Rule3 .
(1) All applications for advances from the Fund shall be made to the Secretary to the Government of Karnataka, Finance Department.
(2) Every application shall give.
(a) brief particulars of the additional expenditure involved;
(b) the circumstances in which provision could not be included in the Budget;
(c) why its postponement is not possible;
(d) the amount required to be advanced from the Fund with full cost of the proposal for the year or part of the year, as the case may be; and
(e) the grant or appropriation under which supplementary provision will eventually have to be obtained.
Rule4 .
Advances from the Fund shall be made for the purpose of meeting unforeseen expenditure including expenditure on a new service not contemplated in the annual financial statement.
Rule5 .
All orders sanctioning advances from the Fund shall issue as Orders of the Governor. The order sanctioning the advance shall specify the amount, the grant or appropriation to which it relates and give brief particulars by sub-heads and units of appropriation of the expenditure for meeting which it is made, and a copy thereof shall be forwarded by the Secretary to the Government of Karnataka, Finance Department, to the Accountant General, Karnataka, Bangalore.
Rule6 .
22. Rule 6 substituted by GSR 770, dated 30-11-1965 (1) Supplementary estimates for all expenditure including expenditure on a New Service not contemplated in the Annual Financial Statement so financed shall be presented to the Legislature at the tirst Session, meeting immediately after the advance is sanctioned unless such advance has been resumed to the Contingency Fund in accordance with the provision of sub-rule (2).
Explanation (i). While presenting to the Legislature, Estimates of Expenditure financed from the Fund, a note to the following effect shall be appended to such estimates. "A sum of Rs.......has been advanced from the Contingency Fund in... .. .and an equivalent amount is required to enable repayment to be made to that Fund".
Explanation (ii). If the expenditure on a New Service not contemplated in the Annual Financial Statement can be met, wholly or partly from savings available within the authorised appropriation, the note appended to the estimate submitted shall be in the following form: The expenditure is on a New Service. A sum of Rs.......has been advanced from the Contingency Fund in.......and an equivalent amount is required to enable repayment to be made to that Fund. The amount/a part of that amount viz., Rs......can be found by reappropriation of savings within the grant, and a token vote only/a vote is required for the balance, viz., Rs..... .only'.
(2) As soon as the Legislature, has authorised additional expenditure by means of Supplementary Appropriation Act, the advance or advances made from the Contingency Fund, whether for meeting the expenditure incurred before the Supplementary Estimates were presented to the Legislature or after they were so presented shall be resumed to the Fund to the full extent of the appropriation made in the Act.
Rule7 .
If, in any case, after the order sanctioning an advance from the Fund has been issued in accordance with Rule 5 and before action is taken in accordance with Rule 6, it is found that the advance sanctioned will remain wholly or partly unutilised, an application shall be made to the sanctioning authority for cancelling or modifying the sanction, as the case may be.
Rule8 .
All advances 11. Rule 8 substituted by GSR 415, dated 28-11-1968 sanctioned from the Fund to meet expenditure in excess of the provision for the services included in the Appropriation (Vote on Account) Act including "New Service" items for which necessary provision has been made in the Budget Estimates of that year shall be resumed to the Fund as soon as the Appropriation Act in respect of the expenditure on the service for the whole year, including the excess met from the advances from the Fund has been passed. In the cases of advance made from the Fund on a "New Service" items referred to above, a statement in Form II annexed shall be prepared by the Finance Department and placed before the State Legislature before the Appropriation Bill for that year is introduced.]
Rule9 .
The order resuming the advance, shall give a reference to the number and date of the order in which the original advance was made and to the Supplementary Appropriation Act referred to in Rule 6 and a copy thereof shall be forwarded by the Secretary to the Government of Karnataka, Finance Department, to the Accountant General, Kamataka, Bangalore.
Rule10 .
An account of the transactions of the Fund shall be maintained by the Finance Department in Form I annexed to these rues.
Rule11 .
Actual expenditure incurred against advances from the Fund shall be recorded by the Departments in the account relating to the Fund in as detailed a manner as it would have been shown if it had been paid out of the Consolidated Fund.
ANNEXURE 1 ANNEXURE
ANNEXURE
FORM I
Contingency Fund of the State of Karnataka
Amount of the Fund Rupees one four crore only
Serial Number
Date of transaction
Number and name of Grant or Appropriation
Number and date of the application for advance
Number and date of the Order making the advance
(1)
(2)
(3)
(4)
(5)
Amount advanced
Supplementary Appropriation Act providing for the additional expenditure
Amount of advance resumed
Balance after each transaction
Initials of the.Officer-in-charge
Remarks
(6)
(7)
(8)
(9)
(10)
(11)
FORM II
Statement showing the advances drawn from the Contingency Fund during the "Vote on Account" period for expenditure on a "New Service" for which necessary provisions had been made in the Budget Estimates for the year.......The advances will be recouped to the Fund after the Appropriation Act is passed.
Particulars of service
Name of the Department
Amount advanced from the Contingency Fund
No. and name of the grant in which provision exists in the Budget Estimates for the year with amount of provision
Brief reason why the expenditure could not be deferred till the demand for grants are voted by the Legislature
(1)
(2)
(3)
(4)
(5)
