LexThe Bihar Contingency fund Act
Bihar · state statute
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Appendix 2
(Rule 5)
Bihar Contingency Fund Act and Bihar Contingency Fund Rules.
THE BIHAR CONTINGENCY FUND ACT, 1950.
[BIHAR ACT XIX OF 1950.]
An Act to provide for the establishment and maintenance of a contingency Fund in
the State of Bihar.
WHEREAS it is expedient to provide for the establishment and maintenance in the State of
Bihar of a Contingency Fund to be placed at the disposal of the Governor of Bihar so as to
enable him to make advances out of such Fund for the purpose of meeting unforeseen
expenditure of the State pending authorization of such expenditure by the Legislature of
the State under appropriations made by law;
AND WHEREAS the Legislature of the State, by clause (2) of Article 267 of the Constitution
of India, has been empowered by law to establish such Fund;
It is hereby enacted as follows:-
1. Short title, extent and commencement:-
1. This Act may be called the Bihar Contingency Fund Act, 1950.
2. It extends to the whole of the State of Bihar.
3. It shall come into force on the 1st day of April, 1950.
2. Interpretation - In this Act, "the Fund" means the Bihar Contingency Fund established
under Section 3.
3. Establishment of the Bihar Contingency Fund - On the commencement of this Act, the
Stat Government shall establish in and for the State of Bihar a fund called the Bihar
Contingency Fund.
4. Withdrawal out of the Consolidated Fund of the State and credit thereof to the
Bihar Contingency Fund - The State Government shall, on the commencement of this Act,
withdraw a sum of Three Hundred and Fifty core1 of rupees out of the Consolidated Fund of
the State and Place it to the credit of the Fund.
1 Amendment vide Bihar Contingency Fund ( Amendment ) 1987
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4A. Temporary Corpus- Starting from the date of commencement of Bihar Contingency
Fund (Amendment) Act 2015 every year till the 30th March, if it requires to increase the
permanent corpus of Contingency Fund beyond Rs 350 crore (three hundred fifty crore),
the same may be enhanced temporarily by the Cabinet up to the maximum of 4 (four)
percent of the expenditure budget of that year up, for the period ending on 30th March of
that financial year. One third of the total amount so enhanced may be used only for relief
and rehabilitation measures due to natural calamities.2
5. Purpose for which the Bihar Contingency Fund may be utilized - The Fund shall be
placed at the disposal of the Governor of Bihar who shall not expend it expect for the
purpose of making advances from time to time for meeting unforeseen expenditure of the
State pending authorization of such expenditure by the Legislature of the State under
appropriations made by law & immediately after the coming into operation of such law; an
amount equal to the amount or amounts advanced by the Governor for the purpose
aforesaid shall be deemed to have been placed to the credit
of the Fund and the amount so transferred shall for all purposes be deemed to be a part of
the Fund:
[Provided that if advance made from the Contingency Fund in any financial year is
authorized by the State Legislature in the current financial year or in succeeding financial
year and the amount of such authorization exceeds the permanent corpus of the Fund, the
amount in excess of the permanent corpus shall be placed to the credit of the consolidated
Fund of the State and not to the Contingency Fund.]3
6. Power to make rules - (I) The State Government may, by notification, make rules to carry
out all or any of the purpose of the Act.
(II) "Every Rule made by the State Government under this Act shall be laid, as
soon as may be after it is made, before each House of the State Legislature, while it is in
session, for a total period of fourteen days which may be comprised in one session or in
two or more successive session, and if, before the expiry of the session immediately
following the session or the successive sessions aforesaid, both Houses agree in making any
modification in the rule, or both Houses agree that the rule should not be made, the rule
shall thereafter have effect only in such modified form or be no effect, as the case may be;
that any such modification or annulment shall be without prejudice to the validity of
anything previously done under that rule II.
2 Inserted by Act 4 of 2015
3 Inserted by Act 17 of 1987
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BIHAR CONTINGENCY FUND RULES
[Issued with notification No. 2803-F, dated the 4th March 1953.]
In exercise of the powers conferred by section 6 of the contingency fund of Bihar
Act, 1950 (XIX of 1950), the Governor of Bihar is pleased to make the following rules:-
1. These Rules may be called the Contingency Fund of Bihar Rules.
2. The Contingency Fund of Bihar shall be held on behalf of the Governor of Bihar by
the Secretary to the Government of Bihar, Finance Department.
3. All applications for advance from the Fund shall be made to the Secretary to the
Government of Bihar, Finance Department ( The form is given in B.M. Form 8 ).
The application shall give -
i. brief particulars of the additional expenditure involved.
ii. the circumstances in which provision could not be included in the budget,
iii. why its postponement is not possible,
iv. 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
v. the grant or appropriation under which supplementary provision will eventually
have to be obtained.
4. Advances from the Fund shall be made for the purpose of meeting unforeseen
expenditure.
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 unit
of appropriation of the expenditure for meeting which it is made, shall be forwarded by the
Finance Department to the Accountant - General, Bihar.
6.(1) 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 unless such advance has been resumed to the Contingency fund in accordance
with the provision of sub-rule (2).]4
Note 1- While presenting to the State Legislature estimates for expenditure financed from
the Bihar Contingency Fund a note to the following effect shall be appended to such
estimates.
4 Subs. by notif. No. B.T. 81167-7109 dated 10-10-1967 published In Bihar Gazette dated 2-12-1967
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A sum of Rs. has been advanced from the Bihar Contingency Fund in
and an equivalent amount is required to enable repayment to be made to the
Fund.
Note 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 authorized
appropriation, the full amount will be advanced from the fund and 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, and an equivalent amount is required to enable repayment to be
made to that Fund.'
'The amount viz. Rs / A part of that amount viz. Rs can be
found by re-appropriation of saving within the grant and a token vote only is now
required/a vote is required for the balance, viz. for Rs only.'
6(2) As soon as the State Legislature has authorized the additional expenditure by means
of a Supplementary Appropriation Act, the advance or advance made from the Contingency
Fund, whether for meeting the expenditure incurred before the Supplementary Estimate
were presented, to the State Legislature or after they were so presented, shall be resumed
to the Fund to the full extent of the appropriation made in the Act.
6-A If in any case, after the order sanctioning an advance from the contingency 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 unutilized, an
application shall be made to the sanctioning authority for cancelling or modifying the
sanction, as the case may be.
6-B All advances sanctioned from the contingency fund to meet expenditure in excess of
the provision for the service included in an Appropriation (Vote on Account0 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 advance
from the Contingency Fund, has been passed.
7. A copy of the order resuming he 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, Bihar, with a copy to the department concerned.
8. An account of the transactions of the Fund shall be maintained by the Finance
Department in Form A annexed to these rules.
[The form is given in B.M. Form 7.]
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9. Actual expenditure incurred against advances from the Bihar Contingency Fund
shall be recorded in the account relating to the Bihar Contingency Fund in the same detail
as it-would have been shown if it had been paid out of the Consolidated Fund.
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