Nepal 2015 Constitution (reviewed 2016)

PART 16. Financial Procedures of Province

203. No tax to be levied or loan to be raised

1. No tax shall be levied and collected except in accordance with law.
2. No loan shall be raised and guarantee be given by the Provincial Government except in accordance with the Federal law.

204. Consolidated Fund of the Province

Except for the revenues of religious endowments, all revenues received by the Provincial Government, all loans raised on the security of revenues, and all the money received in repayment of any loan made under the authority of any Act and any amount received by the Provincial Government shall be credited to a Provincial Government Fund to be known as the Provincial Consolidated Fund.

205. Expenditures from the Provincial Consolidated Fund or a Provincial Government Fund

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

1. money charged on the Consolidated Fund,
2. money required to meet expenditure under an Appropriation Act,
3. advance money authorized by an Act required to meet expenditures, when an Appropriation Bill, is under consideration, or
4. expenditures to be incurred in extraordinary circumstances under a Vote of Credit Act which contains only a description of expenditure.

Provided that matters relating to the Provincial Contingency Fund shall be in accordance with Article 212.

206. Expenditure chargeable on the Provincial Consolidated Fund

The expenditures relating to the following matters shall be charged on the Provincial Consolidated Fund and permission of the Provincial Assembly shall not be necessary for such expenses :

1. the amount to be provided for the salary and benefits of the Speaker and Deputy Speaker of the Province,
2. the amount required as remuneration and benefits payable to the Chairperson and members of the Provincial Public Service Commission,
3. all charges relating to debts for which the Provincial Government is liable,
4. any sum required to be paid under any judgment or decree of a court against the Provincial Government,
5. any other sum declared by law to be chargeable on the Provincial Consolidated Fund.

207. Estimates of revenues and expenditure

1. The Finance Minister of the Province shall, with respect to every fiscal year, present before the Provincial Assembly annual estimates including the following matters:
   1. an estimate of revenues,
   2. the money required to meet the charges on the Provincial Consolidated Fund, and
   3. the money required to meet the expenditure to be provided for by Provincial Appropriation Act.
2. the annual estimate to be presented pursuant to Clause (1) shall be accompanied by a statement of the expenses allocated to each Ministry in the previous financial year and particulars of whether the objectives of the expenses have been achieved.

208. Province Appropriation Act

The money required to meet the expenditure to be provided by any Province Appropriation Act shall be specified under appropriate heads in an Appropriation Bill.

209. Supplementary estimates

1. The Finance Minister of the Province shall, in respect of any financial year, present supplementary estimates before the Provincial Assembly, if it is found-
   1. that the sum authorized to be spent for a particular service by the Provincial Appropriation Act for the current fiscal year is insufficient, or that a need has arisen for expenditure upon new services not provided for by the Provincial Appropriation Act for that year, or
   2. 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 separate heads in a Supplementary Appropriation Bill.

210. Votes on account

1. Notwithstanding anything contained in this Part, a portion of the expenditure estimated for the financial year may, when an Appropriation Bill is under consideration, be incurred in advance by an Act.
2. A Vote on Account Bill shall not be submitted until the estimates of revenues and expenditures have been presented in accordance with the provisions of Article 207, and the sums involved in the Vote on Account shall not exceed one-third of the estimate of expenditure for the financial year.
3. The expenditure incurred in accordance with the Vote on Account Act shall be included in the Appropriation Bill.

211. Votes of credit

Notwithstanding anything contained elsewhere in this Part, if owing to a provincial emergency due to either natural causes or a threat of external aggression or internal disturbances or other reasons, it is impractical or inexpedient in view of the security or interest of the Province to specify the details required under Clause (1) of Article 207, the Finance Minister of the Province may present a Vote of Credit Bill before the Provincial Assembly giving only a description of the expenditure.

212. Provincial Contingency Fund

1. A Provincial Act may create a Fund by the name of Provincial Contingency Fund into which shall be paid from time to time such money as may be determined by the Provincial Act.
2. Such Fund created under clause (1) shall be under the control of the Provincial Government. Any unforeseen expenditures shall be met out of such Fund by the Provincial Government.
3. The amount of the expenditures so met shall be reimbursed as soon as possible as per the Provincial Act.

213. Act relating to financial procedures

Matters relating to the transfer of money appropriated by Provincial Act from one head to another and other financial procedures shall be regulated by Provincial Act.