The Madhya Pradesh Contingency Fund Act 1957

(1) This Act may be cited as the Madhya Pradesh Contingency Fund Act, 1957. (2) It shall come into force immediately on its publication in the Official Gazette of the State.

In this Act, unless the context otherwise requires,— (a) "Contingency Fund" means the Contingency Fund of the State of Madhya Pradesh established under section 3; (b) "State" means the State of Madhya Pradesh.

There shall be established a Contingency Fund of the State of Madhya Pradesh in the nature of an imprest entitled the Contingency Fund of the State, into which shall be paid from and out of the Consolidated Fund of the State of Madhya Pradesh a sum of Rs. 100,00,00,000.

The Fund shall be held by the Secretary to the Government of Madhya Pradesh in the Finance Department on behalf of the Governor 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 appropriations made by law.

For the purpose of carrying out the objects of this Act, the State Government may make rules providing for the custody of the Fund, the payment of moneys therefrom and the withdrawal of moneys therefrom and for all other matters ancillary or incidental to those objects. The order sanctioning an advance from the Contingency Fund, 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 issued by the Finance Department as an order of the Governor and communicated to the Administrative Department concerned and to the Accountant-General, Madhya Pradesh.

(1) The Madhya Pradesh Contingency Fund Ordinance, 1956 (No. 5 of 1956), is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken in exercise of any power conferred by or under the said Ordinance shall be deemed to have been done or taken in exercise of the powers conferred by or under this Act as if this Act were in force on the day on which such thing or action was done or taken. 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 8 or 9; 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.

Sanctions issued to the Heads of Departments by the Administrative Departments for incurring expenditure against the advance shall specify accounts classification in the same details as in rule 5.

(1) Supplementary estimates or Vote on Account, as the case may be, for all expenditure so financed shall be presented to the Legislative Assembly 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). Where, however, an advance from the Contingency Fund is sanctioned after the finalisation of the Supplementary Estimates/Vote on Account in the Finance Department, the estimate in respect of the expenditure so financed, may be presented to the Legislative Assembly at the session next after.

(2) As soon as the Legislative Assembly has authorised additional expenditure by means of an Act, the advance or advances made from the Contingency Fund whether for meeting the expenditure incurred before the estimates were presented to the Legislative Assembly or after they were so presented shall be resumed to the Fund to the full extent of the Appropriation made in the Act.

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.

(1) The Administrative Department shall be responsible for sending to Finance Department the proposals for estimates in recoupement of advances from the Contingency Fund and, in the precies explaining the estimates, a note to the following effect shall be appended:-

"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) In case of expenditure on a 'new service' not contemplated in the Annual Financial Statement, advance from the Contingency Fund, despite savings to the extent being available within the sanctioned grant, should be to the full extent of the expenditure to be incurred up to the date of obtaining the Supplementary Grant, which should be for a token sum when savings are available in the sanctioned grant. The note explaining the Supplementary Grant should 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. ............ is available. A part of the amount, viz., Rs. ............ can be found by re-appropriation of savings within the grant and a token vote only is now required/A vote is required for the balance, viz., Rs. ............".

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 Appropriation Act referred to in rules 8 and 9 shall be forwarded by the Finance Department to the Accountant-General, Madhya Pradesh.

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

The accounting procedure for expenditure met out of advance from the Contingency Fund shall be as follows :-

(i) All drawing officers shall prepare separate bills in respect of expenditure to be met out of the advance from the Contingency Fund and all such bills shall be labelled conspicuously on top "Contingency Fund" by using a rubber stamp or by writing in red ink. Detailed classification of the expenditure in the bill should be given according to the usual budget heads.

(ii) Account of the expenditure shall be maintained separately and reported to the Chief Controlling Officers monthly for control of expenditure in a statement, headed "Expenditure met from the Contingency Fund". The account shall be maintained in the same details as for expenditure met from the ordinary budget grant.

(iii) As soon as orders received allotting funds out of the estimate to meet the expenditure provisionally met from an advance from the Contingency Fund, the procedure of drawing on separate bills shall be discontinued as the separate account shall be closed by transferring the expenditure to the regular departmental account.

Serial No. | Date of transaction | No. and name of grant or appropriation | No. and date of the application for advance | No. and date of the order making advance | Amount of the Fund Rs. ............ | Amount advanced | Appropriation Act after each additional expenditure | Amount of advance resumed | Balance after each transaction | Initials of Officer in-charge | Remarks

(1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) | (10) | (11)

Notes:-(1) The balance should be struck after each transaction. (2) The amount of the advances should be entered in black ink when made, and in red ink when resumed.

1. These rules may be called the Madhya Pradesh Contingency Fund Rules, 1957. 2. In these rules, unless the context otherwise requires, (a) "Contingency Fund" means the Contingency Fund of the State of Madhya Pradesh established under the Madhya Pradesh Contingency Fund Act, 1957 (No. 7 of 1957), consisting of a sum of Rs. 100 Crores which shall be held by the Secretary to the Government of Madhya Pradesh, Finance Department on behalf of the Governor of Madhya Pradesh. (b) "Gazette" means the Madhya Pradesh Gazette. 3. The Contingency Fund shall be used for meeting unforeseen expenditure, which is of an emergent nature and cannot be postponed to be provided for in the budget, or which is likely to cause serious inconvenience or loss to public service if postponed. 4. All applications for advances from the Contingency Fund shall be made to the Secretary to the Government of Madhya Pradesh, Finance Department. The application shall contain the following particulars: (i) Brief particulars of the additional expenditure; (ii) Circumstances in which provision could not be made in the budget; (iii) Reasons why its postponement is not possible; (iv) The amount required to be advanced from the Contingency Fund for the year or part of the year as the case may be; (v) The grant or appropriation to which the expenditure is ultimately debitable; and (vi) Particulars where the expenditure could be met by re-appropriation of savings within the grant in respect of a new service. 5. The order granting the advance shall specify the amount, the grant or appropriation to which it relates, and a brief description of the expenditure by units of appropriation and shall be issued in the name of the Governor by the Secretary, Finance Department and a copy thereof shall be sent to the Administrative Department concerned and the Accountant General, Madhya Pradesh. If, after such order is issued and before the action under Rule 8 is taken, it is found that the advance or part thereof is likely to remain unspent, the advance shall be cancelled or surrendered by the administrative department. 6. The administrative departments shall communicate the details of the expenditure incurred to the head of the department in the same detail as specified in Rule 5. 7. (1) The expenditure so incurred shall be submitted to the Legislative Assembly, as soon as possible after the advance has been made, for approval by means of a supplementary estimate or a demand for grant. Where the expenditure is incurred in anticipation of supplementary grant or appropriation, the amount advanced from the Contingency Fund shall be resumed to the Fund after the supplementary grant or appropriation is passed by the Assembly. (2) However, if the Legislative Assembly has authorized such expenditure by law, it shall be deemed to have been spent out of the original grant, and the amount advanced from the Contingency Fund shall be replenished. 8. The entire amount advanced from the Contingency Fund for any service shall be resumed to the Fund as soon as the supplementary appropriation for the expenditure has been passed. 9. (1) It shall be the responsibility of the administrative department to send the estimates for the recoupment of the advance from the Contingency Fund to the Finance Department, with a note appended to the explanation of the estimates: "... a sum of Rs. ... has been advanced from the Contingency Fund and an equivalent amount is required to enable repayment to be made to the Fund." (2) In case of an expenditure on a "New Service" unforeseen in the annual financial statement, the advice to the Finance Department should also indicate the amount of saving within the grant which can be utilised for the purpose and the balance amount required, and also request for the balance amount to be provided for by vote.