Federal Financial Procedures
115. No tax to be levied or loan to be raised:
(1) No tax shall be levied and collected
except in accordance with law.
(2) No loan shall be raised and guarantee given by the Government of
Nepal except as provided for in the Federal law.
116. Federal Consolidated Fund: Except for the revenues of trusts (Guthi), all
revenues received by the Government of Nepal, all loans raised on the security of
revenues, all amounts received in repayment of any loans made under the
authority of any Act and any other moneys received by the Government of Nepal
shall, except as otherwise provided by a Federal Act, be credited to a Government
Fund to be known as the Federal Consolidated Fund.
117. Expenditures from Federal Consolidated Fund or Federal Government Fund:
No expenditure shall be incurred out of the Federal Consolidated Fund or any
other Federal Government Fund except the following:
(a) moneys charged on the Federal Consolidated Fund,
(b) moneys required to meet the expenditure under a Federal
(c) advance moneys authorized by a Federal Act required to meet
expenditures, when an Appropriation Bill is under consideration, or
(d) expenditures to be incurred in extraordinary circumstances under a
Federal Vote of Credit Act which contains only a description of
expenditures.Provided that matters relating to the Federal Contingency Fund shall be
governed by Article 124.
118. Expenditures chargeable on Federal Consolidated Fund: The expenditures
relating to the following matters shall be charged on the Federal Consolidated
Fund, and approval of the Federal Parliament shall not be required for such
(a) the amount required as remuneration and facilities of the President
and the Vice-president,
(b) the amount required as remuneration and facilities payable to the
Chief Justice of Nepal, Judges of the Supreme Court, and members
of the Judicial Council,
(c) the amount required as remuneration and facilities payable to the
Speaker and the Deputy Speaker of the House of Representatives,
and the Chairperson and the Vice Chairperson of the National
(d) the amount required as remuneration and facilities payable to the
chiefs and officials of the Constitutional Bodies,
(e) the amount required as remuneration and facilities of the Chiefs of
(f) the administrative expenses of the Office of the President or the Vice
President, the Supreme Court, the Judicial Council, the
Constitutional Bodies, and the offices of Chiefs of States,
(g) all charges relating to debts for which the Government of Nepal is
(h) any sum required to satisfy any judgment or decree made by a court
against the Government of Nepal, and
(i) any other sum to be chargeable by the Federal law on the Federal
119. Estimates of revenues and expenditures:
(1) The Minister for Finance of the
Government of Nepal shall, in respect of every financial year, lay before the joint
sitting of both Houses of the Federal Parliament an annual estimate setting out,
inter alia, the following matters:
(a) an estimate of revenues,
(b) the moneys required to meet the charges on the Federal Consolidated
(c) the moneys required to meet the expenditure to be provided for by a
Federal Appropriation Act.
(2) The annual estimate to be laid pursuant to clause (1) shall also be
accompanied by a statement of the expenses allocated to every Ministry in the
previous financial year and particulars of whether the objectives of the expenses
have been achieved.
(3) The Minister for Finance of the Government of Nepal shall lay
before the Federal Parliament an estimate of revenues and expenditures under
clause (1) on the 15th day of Jesta (mid May) each year.
120. Appropriation Act: The moneys to be spent under an Appropriation Act shall be
specified under concerned heads in an Appropriation Bill.
121. Supplementary estimates:
(1) The Minister for Finance of the Government of
Nepal may lay before the House of Representatives a supplementary estimate if it
is found in any financial year,-
(a) that the sum authorized to be spent for a particular service by the
Appropriation Act for the current financial year is insufficient, or
that a need has arisen for expenditures on some new service not
provided for by the Appropriation Act for that year, or
(b) that the expenditures made during that financial year are in excess of
the amount authorized by the Appropriation Act.
(2) The sums included in the supplementary estimate shall be specified
under the related heads in a Supplementary Appropriation Bill.
122. Votes on account:
(1) Notwithstanding anything contained elsewhere in this Part,
a portion of the expenditure estimated for the financial year may, when an
Appropriation Bill is under consideration, be incurred in advance,as provided for
in the Federal Act.
(2) A Vote on Account Bill shall not be introduced until the estimates of
revenues and expenditures have been laid in accordance with Article 119, and the
sums involved in the Vote on Account shall not exceed one-third of the estimate of
expenditures for the financial year.
(3) The expenditures incurred in accordance with the Federal Vote on
Account Act shall be included in the Appropriation Bill.
123. Votes of credit: Notwithstanding anything contained elsewhere in this Part, if
owing to an emergency due to either natural causes or a threat of external
aggression or internal disturbances or other reasons, it appears to be impractical or
inexpedient in view of the security or interest of the country to specify the details
required under Article 119, the Minister for Finance of the Government of Nepal
may lay before the House of Representatives a Vote of Credit Bill giving only a
statement of expenditures.
124. Federal contingency fund:
(1) A Federal Act may create a fund to be known as
the contingency fund into which such moneys as may be determined by the
Federal Act shall be paid from time to time.
(2) The Government of Nepal shall control the fund under clause (1),
and may meet any unforeseen expenditure out of such fund.
(3) The amount of the expenditure under clause (2) shall be reimbursed
as soon as possible as provided for in the Federal Act
125. Act relating to financial procedures: Matters relating to the transfer of moneys
appropriated by the Federal Act from one head to another and other financial
procedures shall be as provided for in the Federal Act.