(1)TheGovernor-General shall in respect of every financial year cause to be laidbefore ¹ [both Chambers] of the Federal Legislature a statement of theestimated receipts and expenditure of the Federation for that year, in this Partof this Act referred to as the "annual financial statement".

(2)The estimates of expenditure embodied in the annual financial statement shallshow separately-

thesums required to meet expenditure described by this Act as expenditure chargedupon the revenues of the Federation; and thesums required to meet expenditure proposed to be made from the revenues of theFederation, andshall distinguish expenditure on revenue account from other expenditure, [andindicate the sums, if any, which are included solely because theGovernor-General has directed their inclusion as being necessary for the duedischarge of any of his special responsibilities.]

(3)The following expenditure shall be expenditure charged on the revenues of theFederation:--

thesalary and allowances of the Governor-General and other expenditure relating tohis office for which provision is required to be made by Order in Council] ;

debtcharges for which the Federation is liable, including interest sinking fundcharges and redemption charges, and other expenditure relating to the raising ofloans and the service and redemption of debt:

I² thesalaries and allowances of ministers, ³ [of ounselors, of thefinancial adviser], of the advocate-general, of chief commissioners ³ [andof the staff of the financial adviser];

thesalaries, allowances and pensions payable to or in respect of judges of theFederal Court, and the pensions payable to or in respect of judges of any HighCourt;

⁴ (e)expenditure for the purpose of the discharge by the Governo-General ofhis functions with respect to defence and ecclesiasticalaffairs, his functionswith respect to external affairs in so far ashe is by or under this Act requiredin the exercise thereof to actin his discretion, his functions in or in relationto tribal areas;and his functions in relation to the administration of anyterritory;in the direction and control of which he is under this Act;required toact in his discretion: provided that the sum socharged in any year in respect ofexpenditure on ecclesiasticalaffairs shall not exceed forty-two lakhs of rupees,exclusive ofpension charges;

⁴ (f)the sums payable to His Majesty under this Act out of therevenues of theFederation in respect of the expenses incurredin discharging the functions ofthe Crown in its relations withIndian States;

⁴ (g)any grants for purpose connected with the administration of any.areas ina Province which are for the time being excluded areas;

anysums required to satisfy any judgment, decree or award of any Court or arbitraltribunal;

anyother expenditure declared by this Act or any Act of the Federal Legislature tobe so charged.

⁴ (4)Any question whether any proposed expenditure falls within aclass of expenditurecharged on the revenues of the Federation shall bedecided by theGovernor-General in his discretion.

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1.Substituted by the words 'the Legislature', Government of India (Commencementand Transitory Provisions) Order, 1936, paras. 3 and 11.

2.This cl. in so far as it relates to the Advocate-General cane into forceon 1-4-1937, under Government of India (Commencement and Transitory Provisions)Order, 1936, paras. 3 and 11.

3.The words within brackets were omitted, by Government of India(Commencement and Transitory Provisions) Order, 1936, paras. 3 and 11.

4.Cls. (e), (f) and (g.) of sub-sec. (3) and sub-sec. (4) were omitted, byGovernment of India (Commencement and Transitory Provisions) Order, 1936, paras.3 and 11.