Bihar Contingency fund Act

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.

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.