APPENDIX XIV

 APPENDIX 14
[See Paragraph 96]
THE KERALA CONTINGENCY FUND ACT, 1957

[As amended by the Kerala Contingency Fund (Amendment)

Act, 1972]*An Act to provide for the establishment and maintenance of Contingency Fund

Preamble.—Whereas it is expedient to establish and maintain a Contingency Fund for the State of Kerala;

BE it enacted in the Eighth Year of the Republic of India as follows:—

1. Short title and commencement.—(1) This Act may be called the Kerala Contingency Fund Act,1957.

(2) It shall come into force at once.

2. Establishment of the Contingency Fund of Kerala.—(1) There shall be established a Contingency Fund in the nature of an imprest entitle “the Contingency Fund of the State of Kerala” and consisting of a sum of three hundred lakhs of rupees* withdrawn from the Consolidated Fund of the State of Kerala.

(2) Such Contingency Fund shall be held on behalf of the Governor of Kerala by the Secretary to the Government of Kerala in the Department of Finance and the Governor shall have authority to make advances therefrom for the purpose of meeting any unforeseen expenditure pending authorisation of such expenditure by the State Legislature by law under Article 205 or Article 206 of the Constitution.

(3) As often as nay such expenditure is authorised by law as aforesaid, the Government shall recoup to the Contingency Fund an amount equal to the advance taken from such Fund to meet the expenditure. 

*Substituted as per the Kerala Contingency Fund (Amendment) Act, 1972, with effect from 28th August1972.

3. Power to make rules.—For the purpose of carrying out the objects of this Act, the Government may, by notification in the Gazette, 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 Kerala.

4. Repeal.—The Contingency Fund Act, 1950 (Act XXXII of 1950), is hereby repealed.

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KERALA CONTINGENCY FUND RULES, 1957

(As amended up to 21st July, 1971)

In exercise of the powers conferred by Section 3 of the Kerala Contingency Fund Act, 1957 (Act 6 of 1957) the Government of Kerala hereby make the following rules; namely:—

1. These rules may be called the Kerala Contingency Fund Rules.

2. The Contingency Fund shall be held on behalf of the Governor by the Secretary to the Government of Kerala in the Department of Finance.

3. Applications for advances from the Contingency Fund shall be made in triplicate, in Form A appended to these Rules, to the Secretary to the Government of Kerala in the Finance Department.

3A. While applying for an advance from the Contingency Fund, the actual requirements should be assessed accurately, and if, for any unforeseen reason, the advance already obtained in any case is

found inadequate, the excess expenditure shall be incurred only after getting the original amount of advance enhanced to cover that excess expenditure.

4. Advances from the Fund shall be made for the purposes of meeting unforeseen expenditure, including expenditure on a new service not contemplated in the annual financial statement.

5. A copy of the order sanctioning the advance, which 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, shall be forwarded by the Finance Department to the Accountant General.

Explanation.—When an advance is sanctioned from the Contingency Fund, notwithstanding such sanction, the amount shall continue to form part of that Fund till it is actually withdraw and spent in the specific purpose for which the advance is sanctioned.

5A. The order authorising an advance from the Contingency Fund shall not lapse with the close of the year, but shall lapse only on the passing of the Supplementary Appropriation Act referred to in Rule 6.

6. Supplementary estimates for all expenditure so financed shall be presented to the State Legislature at the first session meeting immediately after the advance is sanctioned. As soon as the Legislature has authorised the additional expenditure by including it in and Supplementary Appropriation Act, the advances made from the Fund shall be resumed to the Fund.

Note.—(1) While presenting to the Legislature estimates for expenditure financed from the Contingency 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”.

(2) 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, Viz. Rs. . . . . . . .. . . . . ..,

-----------------------------can be found by

A part of the amount, viz. Rs. . . . . . . .. . . . . ..

reappropriation of savings the grant and a token vote only is now required ---------------------------------------------“

A vote is required for the balance, viz. Rs. . . . . . . .. . . . . ..only

(3) If any expenditure has been incurred during any year by taking an advance from the Contingency Fund and a Supplementary Grant or appropriation is not obtained during the same year for meeting such expenditure, then the funds for such expenditure shall be provided in the next financial year either by means of a token Supplementary Grant, if saving are available from the Grants in the Annual financial statement, or by a Supplementary Grant or Appropriation for the full amount against the appropriate minor head for the service in questions under the major head concerned under which the expenditure was incurred in the previous year from the Contingency Fund.

Explanation.—The Grant of Appropriation under the major and minor head concerned shall be for a token amount or for that portion of the sun t\which cannot be met from savings in the sanctioned Grant, the amount which can be met from savings being clearly indicated in the Explanatory Memorandum. It shall also be indicated that the provision includes that the provision includes a sum which was met out of the Contingency Fund I the previous year. In the case of expenditure of a ‘New service’, it shall also be specifically stated in the Explanatory Memorandum that the expenditure is on a ‘New Service’.

6A. As soon as the Legislature has authorized additional expenditure by means of a 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.

7. If, in any case, after the order sanctioning an advance from the Contingency Fund has been 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.

8. All advances sanctioned from the Contingency Fund to meet expenditure in excess of the provision for the service included in an Appropriation (Vote on Account) Act shall be resumed to the Contingency 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 Contingency Fund, has been passed.

*8A. In cases of advances from the Kerala Contingency Fund drawn for expenditure on a ‘New Service’ during ‘Vote on Account’ period and for which adequate provision exists in the Appropriation bill for the year, the advance will stand resumed to the Contingency Fund after the Appropriation act for the whole financial year is passed. The details of such advances, in the following pro forma, will, however, be laid on the table of the Legislative Assembly before the Appropriation bill for the whole year is introduced in the Assembly.

Statement showing advances drawn from the Kerala Contingency Fund during the “Vote on Account” period for expenditure on ‘New Service’ for which necessary provision had been made in the Budget Estimates for. . . . . . . . . . . . . The advances will be recouped to the fund after the Appropriation

Act is passed.

9. A copy of the order resuming the advance, which 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, shall be forwarded by the Finance Department to the Accountant General.

10. An account of the transactions of the Fund shall be maintained by the Finance Department in Form B annexed to these Rules.

11. A record of the amounts of advances sanctioned from the Contingency Fund and of the balances available in the Fund from time to time shall be maintained in Form C appended to these rules by the Spending authority. The Chief controlling Officers and their departmental subordinates shall keep proper record of the actual expenditure incurred against the advances from the Contingency Fund, in the same manner as for the expenditure out of the Consolidated Fund of the State. Proper reconciliation of the Departmental figures of expenditure out of the advances from the Contingency Fund with those booked by the Accountant General shall also be effected.