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credited to such a Fund.
(2) Matters relating to expenditures from the Local Consolidated
Fund under clause (1) shall be as provided for in the L ocal law.
230. Estimates of revenues and e xpenditures of Village Body and Municipality : (1)
The Village Executive and the Municipal Executive sh all, subject to this
Constitution, lay an estimate of revenues and expenditures of every financial
year before, and have the estimate pa ssed by, the Village Assembly and the
Municipal Assembly , respectively , as provided for in the Local law.
(2) If, in laying an estimate of revenues and expenditures under
clause (1), the Village Executive or Municipal Executive is required to make a
deficit budget, it must purpose also the sources to meet the deficit as provided
for in the Federal l aw and the State l aw.
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Part-20
Interrelations between Federation , State and Local Level
231. Legislative i nterrelations between Federation and States : (1) The Federal Law
may be made to be applicable to the whole of, or, if required, to any part of, the
territory of Nepal.
(2) A State law may be made to be applicable to the whole of, or as
required , to any part of the territory of the State.
(3) If two or more States make a request to the Government of Nepal
to make laws on any matter enumerated in Schedule -6, the Federal Parliament
may make necessary laws. Suc h laws shall be applicable only to the concerned
States.
232. Relations between Federation , State and Local l evel: (1) Th e relations between
the Federation, States, and Local l evel shall be based on the principles of
cooperation, co-existence and coordination.
(2) The Government of Nepal may, pursuant to this Constitution and
the Federal Law, give necessary directions to any State Council of Ministers on
matters of national importance and on matters to be coordinated between the
States, and it shall be the duty of the concerned State Council of Ministers to
abide by such directions.
(3) If any such type of act as may seriously undermine the
sovereignty, territorial integrity, nationality or independence of Nepal is carried
out in an y State, the President may , as required, warn such State Council of
Ministers , suspend or dissolve the State Council of Ministers and the State
Assembly for a period not exceeding six months .
(4) Any suspension or dissolution of any State Council of Minist ers
and State Assembly m ade pursuant to clause (3 ) must get ratified by a two -
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thirds majority of the total number of the then members of the Federal
Parliament within thirty five days.
(5) If dissolution made pursuant to clause (3) is ratified by the
Federal Parliament, election to the State Assem bly shall be held in such State
within six months.
Provided that such suspension or dissolution shall ipso facto be invalid
if it is not ratified by the Federal Parliament .
(6) The Federal ruling shall apply t o such State during the period of
such suspension if the suspension made pursuant to clause (3) is ratified
pursuant to clause (4 ) and until election to the State Assembly is held pursuant
to clause (5).
(7) During the continuance of the Federal rule, the Federal
Parliament may make laws with respect to an y matter enumerated in the List
contained in Schedule -6. Such laws shall continue to exist until repealed by
other laws made by the concerned State Assembly.
(8) The Government of Nepal may, directly or through the State
Government, render necessary assistance to, and give necessary directives to,
any Village Executive or Municipal Executive, pursuant to this Constitution
and the Federal l aw. It shall be the duty of the Village Executive or Munic ipal
Executive to abide by such directives.
233. Relations between States : (1) One State shall render assistance in the execution
of legal provisions or judicial and administrative decisions or orders of another
State.
(2) A State may exchange information and consult with another State
on matters of common concern and interest, coordinate each other on their
activities and legislations and extend mutual assistance.
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(3) A State shall , in accordance with its State l aw, provide equal
security, treatment and facility to residents of another State.
234. Inter-State Council : (1) There shall be an Inter -State Council as follows to
settle political disputes arising between the Federation and a State and between
State s:
(a) Prim e Minister - Chairperso n
(b) Minister for Home Affairs of the Government of Nepal - Member
(c) Minister for Finance of the Government of Nepal - Member
(d) Chief Ministers of the concerned State s - Member
(2) The Inter-State Council may meet as required.
(3) The Inter -State Council may invite to its meeting a Minister of
the Government of Nepal and a Minister of the concerned State who is
responsible for the matter of dispute and a concerned exp ert.
(4) The rules of procedures of the meeting of the Inter -State Council
shall be as determined by the Council itself.
235. Coordination between Federation , State and Local Level : (1) The Federal
Parliament shall make necessary laws in order to maintain coordination
between the Federation , State and Local l evel.
(2) The State Assembly may maintain coordination between the
State and Village Bodies or Municipalities and settle political disputes, if any,
that have arisen, in coordination with the conc erned Village Body ,
Municipality and the District Coordination Committ ee.
(3) The processes and procedures for the settlement of disputes
under clause (2) sha ll be as provided for in the State l aw.
236. Inter-State trade: Notwithstanding anything contained elsewhere in this
Constitution, it is prohibited to make any kind of obstruction to the carriage of
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goods or extension of services by a State or Local level to another State or
Local l evel or to the carriage of goods or extension of services to any State or
Local Level or to levy tax, fee or charge thereon or to make any kind of
discrimination on the carriage or extension of such services or goods.
237. Not to affect j urisdiction of Constitutional Bench of Supreme Court : Nothing