Creation of Consolidated Fund

09/09/2019

As less than two months have left for the implementation of Jammu and Kashmir Reorganization Act, 2019, the Government has set into motion an exercise for creation of Consolidated Fund of the Union Territory of Jammu and Kashmir with Financial Commissioner Finance Department directing all the departments to reconcile accounts with the office of the Accountant General by October 30 to pave the way for closure of accounts of the State. The Section 67(I) of the J&K Reorganization Act, which was passed by the Parliament early last month, states that there shall be Consolidated Fund of the Union Territory of Jammu and Kashmir successor to the Consolidated Fund of the State of Jammu and Kashmir. On and from the appointed day, the accounts of the Union Territory of Jammu and Kashmir shall be kept in such form as the Lieutenant General may, after obtaining advice of the Comptroller and Auditor General of India, prescribe by Rules. The Section 67(I) of the J&K Reorganization Act states that on and from the appointed day, all revenues received in the Union Territory of Jammu and Kashmir by the Government of India or the Lieutenant Governor of the Union Territory of Jammu and Kashmir in relation to any matter with respect to which the Legislative Assembly of the Union Territory of Jammu and Kashmir has power to make laws, and all grants made and all loans advanced to the Union Territory of Jammu and Kashmir from the Consolidated Fund of India and all loans raised by the Government of India or the Lieutenant Governor of the Union Territory of Jammu and Kashmir upon the security of the Consolidated Fund of the Union Territory of Jammu and Kashmir and all moneys received by the Union Territory of Jammu and Kashmir in repayment of loans shall form one Consolidated Fund to be entitled "the Consolidated Fund of the Union Territory of Jammu and Kashmir".
The custody of Consolidated Fund, the payment of money into such Fund, the withdrawal of money there-from and all other matters connected with or ancillary to those matters shall be regulated by Rules to be made by the Lieutenant Governor. On and from October 31, 2019, all other public moneys received by or on behalf of the Lieutenant Governor shall be credited into a public account entitled the Public Account of UT of J&K and the custody of public moneys received by or on behalf of Lieutenant Governor, their payment into the Public Account of UT and the withdrawal from such account and all other connected matters shall be regulated by the Lieutenant Governor on the advice of Council of Ministers", read Sub-Section 2 of Section 68 of the Act. Moreover, there shall be Contingency Fund of the Union Territory of Jammu and Kashmir and such a Fund shall be held by the Lieutenant Governor to enable advances to be made by him out of such Fund.

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