ANDHRA PRADESH CONTINGENCY FUND ACT, 1957

9 of 1957

5th September, 1957

An Act to provide for the establishment of a Contingency Fund for the State of Andhra Pradesh. Whereas clause (2) of article 267 of the Constitution 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 Andhra Pradesh ; Be it enacted in the Eighth Year of the Republic of India as follows :-

Section 1 Short title and commencement

(1) This Act may be called the Andhra Pradesh Contingecy Fund Act, 1957.

2. It shall come into force at once.

Section 2 Establishment of a Contingency Fund

(1) There shall be established for the State of Andhra Pradesh a Contingency Fund in the nature of an imprest called "the Contingency Fund of the State of Andhra Pradesh", and consisting of * [a sum of fifty crore of rupees] withdrawn from the Consolidated Fund of the State.

(2) Such Contingency Fund shall be at the disposal of the Governor of Andhra Pradesh ; and he 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 any such expenditure is authoriesed by law as aforesaid, the State Government shall recoup to the Contingency Fund an amount equal to the advance taken from such Fund to meet the expenditure.

Section 3 Power to make rules

The State Government may, by notification in the Andhra Pradesh Gazette, make rules for the purposes of carrying into effect the provisions of this Act.

Section 4 Repeal

The Madras Contingency Fund Act, 1950 (Madras Act, XIV of 1950 and the Hyderabad Contingency Fund Act, 1952 (Hyderabad Act XLIII of 1952), are hereby repealed.

Section 5 Interpretation

The Andhra Pradesh General Clauses Act, 1891, (Act I of 1891) apply for the interpretation of this Act as it applies for the interpretation of an Andhra Act.

RULE:

ANDHRA PRADESH CONTINGENCY FUND RULES, 1961.

In exercise of the powers conferred by section 3 of the Andhra Pradesh Contingency Fund Act, 1957 (Andhra Pradesh Act 9 of 1957), the Governor of Andhra Pradesh hereby makes the following rules.

Rule 1 Rule

These Rules may be called the Andhra Pradesh Contingency Fund Rules, 1961.

Rule 2 Rule

The Andhra Pradesh Contingency Fund shall be held on behalf of the Governor of Andhra Pradesh by the Secretary to the Government of Andhra Pradesh, Finance Department.

Rule 3 Rule

No advance shall be made out of the Contingency Fund of the State except for the purpose of meeting unforeseen expenditure including expenditure on a new service not contemplated in the annual financial statement pending authorisation of such expenditure by the State Legislature under appropriations made by Law.

Rule 4 Rule

No sanction shall be accorded in the course of a year to a scheme treated as "New Service" without obtaining the previous sanction of the Legislature by presenting a supplementary estimate for the amount required for expenditure on the scheme during the year. If, however, the scheme is so extremely urgent that its introduction cannot be delayed it may be sanctioned, the expenditure being met from an advance taken from the Andhra Pradesh Contingency Fund pending approval of the Legislature. In such cases, the order sanctioning the scheme shall specifically state that the expenditure which will be debited to the appropriate heads of account will be initially met by an advance from the Contingency Fund and that orders in this regard will be issued separately by the Finance Department. A copy of the order as soon as it is issued, shall be sent to the Finance Department with the following information for the purpose of sanctioning the required advance from the Contingency Fund.

(1) The circumstances in which the provisions could not be included in the Annual Budget.

(2) the reasons for which the expenditure cannot be postponed till the voting of the Supplementary grant.

(3) the full cost of the proposals for the remaining part of the financial year.

(4) the amount required to be advanced out of the Contingency Fund.

(5) The grant or appropriation to which the expenditure is debitable also indicating the classification of the expenditure in the same detail as it would have been shown if it had been met out of the Consolidated Fund. No expenditure should be incurred until the advance is sanctioned from the Contingency Fund by Government.

Rule 5 Rule

All orders Sanctioning advances from the Contingency 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 the number and date of the order sanctioning the scheme, and brief description of the scheme and a copy there of shall be forwarded by the finance Department to the Accountant-General, Andhra Pradesh, with copy to the Administrative Department.

Note :-(1) When an advance is sanctioned from the Contingency Fund, the amount shall continue to remain physically as apart of that fund and shall not go out of it till it is actually withdrawn and spent on the specific purpose for which the advance is sanctioned.

Note :-(2) The orders authorising an advance from the Contingency Fund, unless it is cancelled as per rule 10 during the interval, shall not lapse with the close of the year, but shall lapse as soon as the Supplementary appropriation Act, incorporating the Grants authorised by the Legislature is passed and becomes Law.

Rule 6 Rule

Actual expenditure incurred against advaces from the Contingency Fund shall be recorded in the account relating to the Contingency fund in the same details as it would have been shown if it had been paid out of the Consolidated Fund of the State. The insturctions issued by the Accountant General regarding the accounting procedure for expenditure met out of advances from the Contingency Fund of Andhra Pradesh should be strictly followed by all Heads of Departments and other Controlling officers.

Rule 7 Rule

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Rule 8 Rule

In cases in which it becomes absolutely necessary to sanction advances from the Contingency Fund because of the emergent nature of such charges, although there is no possibility of advances being recouped within the same financial year, it shall be necessary to make provision in the next financial year for the amount to be recouped to the Contingency Fund in respect of expenditure for which supplementary founds were not provided during the course of the year itself. In all such cases provision shall be made against the appropriate Minor head for the service in question under the Major head concerned under which the expenditure was incurred in the previous year from the contingency fund. The fact that the provision represents recoupment of advance sanctioned during the preceding financial year shall be fully explained in the explanatory note pertaining to the grant concerned.

Rule 9 Rule

The Administrative Departments of the Secretariat shall be responsible for sending them to the Finance Department the proposals for supplementary estimates for recoupment of advances from the Contingency Fund.

Rule 10 Rule

If, in any case, after the orders sanctioning an advance from the Contingency Fund have been issued in accordance with rule 5 and before action is taken in accordance with Rules 8 and 7 it is found that the advance sanctioned will remain wholly or partly utilised, an application shall be made to the sanctioning authority for cancelling or modifying the sanction as the case may be.

Rule 11 Rule

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 shall be forwarded by the Finance Department to the Accountant-General, Andhra Pradesh at Hyderabad with copy to the Administrative Department concerned.

Rule 12 Rule

An account of the transactions of the Contingency Fund shall be maintained by the Finance Department in Form 'A' annexed to these rules.

ANNEXURE 1 ANNEXURE

1 Office of the Commissioner of Police, Hyderabad, Andhra Pradesh

Form A Andhra Pradesh Contingency Fund

FORM''

FORM'A'

Andhra Pradesh Contingency Fund: Total amount in the Fund Rupees Fifty Crores.

G.O.No. and date in which the scheme was sanctioned by the Administrative Department of the Secretariat Brief description of the scheme G.O.No. and date in which advance was sanctioned by the Finance Department Amount of Advance sanctioned Reference to the appropriation Act or the order in which the Supplementary Grant was sanctioned or the order in which the advance sanctioned was cancelled Balance in the Fund after each transaction (1) (2) (3) (4) (5) (6)