¹THE CONSTITUTION (DISTRIBUTION OF REVENUES) No. 7 ORDER, 2003

"C.O.198"

In exercise of the powers conferred by article 275 of the Constitution, the President, after having considered the recommendations of the Finance Commission, hereby makes the following Order, namely:--

1. This Order may be called the Constitution (Distribution of Revenues) No 7 Order 2003.

2. The General Clauses Act, 1897 (10 of 1897), shall apply for the interpretation of this Order as it apples for the interpretation of a Central Act.

3. (1) In accordance with the provisions of clause (1) of article 275, there shall be charged on the Consolidated Fund of India, in the financial year commencing on the 1st day of April, 2002, as grants-in-aid of the revenues to--

(a) each of the States specified in column (1) of the Table below, the sums specified against it in each of the columns (2) to (14) of the said Table, towards expenditure of revenue and capital nature, on programmes for upgradation of standards and "special problems" relating to the administration of the sectors and services mentioned in those columns, namely:--

Provided that the sums specified above shall be expended on programmes formulated by the State Governments for upgradation and standards relating to the administration of the sectors and services specified above and approved by State Level Empowered Committees:

Provided further that the amount of grant specified above against any administration is subject to adjustment within the financial year commencing on the 1st day of April, 2002 against the actual expenditure incurred on approved programme or programmes relating to such administration, as reflected in the accounts of that years:

Provided also that the unutilised grant for a particular year may be carried forward to next year and the grant which remain unutilised will be credited to the Incentive Fund during 2004-05 from which fiscal performance based grants are to be released to all the States;

(b) each of the States specified in column (1) of the Table below, the sums specified against it in each of the columns (2) to (8) of the said Table, towards expenditure of capital nature, on programmes approved by the Central Government for upgradation of Standards and "special problems" mentioned in those columns, incurred in the financial year commencing on the 1st day of April, 2002, namely:--

Table

Provided that if the actual expenditure on such approved programmes relating to any administration as revealed in the accounts of that year is lower than the amount of grant specified above against that administration, the amount so paid in excess shall be adjusted against any sum or sums which may become payable to that State in any of the succeeding years for any other purpose.

(2) Any sum or sums payable under clauses (a) and (b) of sub-paragraph (1) shall be in addition to any sum or sums payable to the States under each of the provisos to clause (1) of article 275.

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1. Published with the Ministry of Law, Justice and Company Affairs, Notification No. G.S.R. 264(E), dated the 31 March 2003, Gazette of India, Extraordinary, 2003, Part, II, Section 3,sub-section (i).