LIMITATIONS OF PROVINCIAL FINANCE 191
consideration of exceptional services to the Government of a pension exceeding Rs. 1,000 a year or a gratuity exceeding Rs. 3,000 in any one case. [1]
(3) Rules of Expenditure
The powers of sanctioning expenditure granted to the Provincial Government were as limited as their revenue powers. While they were free to spend their funds on the services entrusted to them, certain limitations were laid down for the purposes of expressly ruling out certain objects and subjects of expenditure from the provincial domain.
With regard to the objects of their expenditure Provincial Governments were required—
(i) Not to sanction any expenditure from public money on anything outside the category of objects of expenditure recognised by the Government of India. [2]
(ii) To confine themselves to the carrying on of the services particularly entrusted to them by the terms of the settlement.
Prior to 1912 they could undertake a “new general service or duty” only if they satisfied the Government of India that they could provide the necessary funds temporarily if it was temporary, and permanently if it was permanent. [3] This provision was altered in 1912 so that a Provincial Government could undertake a new general service or duty provided it was not ( a ) of an unusual nature, or ( b ) devoted to objects outside the ordinary work of administration, or ( c ) likely to involve at a later date expenditure beyond its powers of sanction. [4]
(iii) Not to spend—
(a) On State ceremonies and assemblies, and on the entertainment at the public charge of distinguished visitors to India more than Rs. 1,00,000. [5]
1 Rule 10 (8) of 1912.
2 Rule 11 of 1897, also embodied in subsequent Resolutions.
3 Rule 4 (2) of 1897.
4 Rule 5 (11) of 1912.
5 Rule 10(11) of 1912.