¹ [186. Finance of the Railway Authority

(1) The Authority shall establish, maintain and control afund (which shall be known as the "Railway Fund") and all moneysreceived by the Authority, whetheron revenue account or on capital account, inthe discharge of their functions and all moneys provided, whether onrevenueaccount or on capital account, out ol the revenues of the Federationtoenable them to discharge those functions shall be paid into that Fund, and allexpenditure, whether on revenue account or on capital account, requiredfor thedischarge of their functions shall be defrayed out of thatFund:

Provided that nothing in this sub-section shall prevent theAuthority from establishing and maintaining separate provident funds for thebenefit of persons who are or have been employed in connection with railways.

(2) The receipts of the Authority on revenue account in anyfinancialyear shall be applied in-

(a) defraying workingexpenses;

(b) meeting paymentsdue under contracts or agreements to railway undertakings;

(c) paying pensions,and contributions to provident funds;

(d) repaying to therevenues of the Federation so much of any pen-sions and contributions toprovident funds charged by this Act on; thoserevenues as is attributable toservice on railways in India;

(e) making dueprovision for maintenance, renewals, improvementsand depreciation;

(f) making to therevenues of the Federation any payments by way cf interest which they arerequired by this Part of this Act to make; and

(g) defraying otherexpenses properly chargeable against revenue inthat year.

(3) Any surplus on revenue account shown in the accounts ofthe Authority shall be apportioned between the Federation and the Authority inaccordance with a scheme to be prepared, and from time to time reviewed, by theFederal Government, or, until such a scheme has been prepared, in accordancewith the principles which immediately before the establish-ment of the Authorityregulated the application of surpluses in railway accounts, and any sumapportioned to the Federation under this subsection shall be transferredaccordingly and shall form part of the revenues of the Federation.

(4) The Federation may provide any moneys, whether onrevenue account or capital account, for the purposes of the Railway Authority,but, where any moneys are so provided, Ihe provision thereof shall be deemed tobe expenditure and shall accordingly be shown as such in the estimates ofexpenditure laid before Chambers of the Legislature.

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1. Omitted, by the India (Provisional Constitution)Order, 1947.