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credited to such a Fund.
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(2) Matters relating to expenditures from the Local Consolidated
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Fund under clause (1) shall be as provided for in the L ocal law.
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230. Estimates of revenues and e xpenditures of Village Body and Municipality : (1)
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The Village Executive and the Municipal Executive sh all, subject to this
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Constitution, lay an estimate of revenues and expenditures of every financial
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year before, and have the estimate pa ssed by, the Village Assembly and the
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Municipal Assembly , respectively , as provided for in the Local law.
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(2) If, in laying an estimate of revenues and expenditures under
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clause (1), the Village Executive or Municipal Executive is required to make a
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deficit budget, it must purpose also the sources to meet the deficit as provided
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for in the Federal l aw and the State l aw.
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144
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Part-20
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Interrelations between Federation , State and Local Level
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231. Legislative i nterrelations between Federation and States : (1) The Federal Law
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may be made to be applicable to the whole of, or, if required, to any part of, the
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territory of Nepal.
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(2) A State law may be made to be applicable to the whole of, or as
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required , to any part of the territory of the State.
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(3) If two or more States make a request to the Government of Nepal
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to make laws on any matter enumerated in Schedule -6, the Federal Parliament
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may make necessary laws. Suc h laws shall be applicable only to the concerned
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States.
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232. Relations between Federation , State and Local l evel: (1) Th e relations between
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the Federation, States, and Local l evel shall be based on the principles of
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cooperation, co-existence and coordination.
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(2) The Government of Nepal may, pursuant to this Constitution and
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the Federal Law, give necessary directions to any State Council of Ministers on
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matters of national importance and on matters to be coordinated between the
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States, and it shall be the duty of the concerned State Council of Ministers to
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abide by such directions.
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(3) If any such type of act as may seriously undermine the
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sovereignty, territorial integrity, nationality or independence of Nepal is carried
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out in an y State, the President may , as required, warn such State Council of
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Ministers , suspend or dissolve the State Council of Ministers and the State
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Assembly for a period not exceeding six months .
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(4) Any suspension or dissolution of any State Council of Minist ers
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and State Assembly m ade pursuant to clause (3 ) must get ratified by a two -
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145
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thirds majority of the total number of the then members of the Federal
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Parliament within thirty five days.
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(5) If dissolution made pursuant to clause (3) is ratified by the
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Federal Parliament, election to the State Assem bly shall be held in such State
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within six months.
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Provided that such suspension or dissolution shall ipso facto be invalid
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if it is not ratified by the Federal Parliament .
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(6) The Federal ruling shall apply t o such State during the period of
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such suspension if the suspension made pursuant to clause (3) is ratified
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pursuant to clause (4 ) and until election to the State Assembly is held pursuant
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to clause (5).
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(7) During the continuance of the Federal rule, the Federal
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Parliament may make laws with respect to an y matter enumerated in the List
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contained in Schedule -6. Such laws shall continue to exist until repealed by
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other laws made by the concerned State Assembly.
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(8) The Government of Nepal may, directly or through the State
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Government, render necessary assistance to, and give necessary directives to,
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any Village Executive or Municipal Executive, pursuant to this Constitution
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and the Federal l aw. It shall be the duty of the Village Executive or Munic ipal
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Executive to abide by such directives.
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233. Relations between States : (1) One State shall render assistance in the execution
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of legal provisions or judicial and administrative decisions or orders of another
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State.
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(2) A State may exchange information and consult with another State
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on matters of common concern and interest, coordinate each other on their
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activities and legislations and extend mutual assistance.
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146
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(3) A State shall , in accordance with its State l aw, provide equal
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security, treatment and facility to residents of another State.
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234. Inter-State Council : (1) There shall be an Inter -State Council as follows to
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settle political disputes arising between the Federation and a State and between
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State s:
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(a) Prim e Minister - Chairperso n
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(b) Minister for Home Affairs of the Government of Nepal - Member
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(c) Minister for Finance of the Government of Nepal - Member
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(d) Chief Ministers of the concerned State s - Member
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(2) The Inter-State Council may meet as required.
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(3) The Inter -State Council may invite to its meeting a Minister of
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the Government of Nepal and a Minister of the concerned State who is
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responsible for the matter of dispute and a concerned exp ert.
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(4) The rules of procedures of the meeting of the Inter -State Council
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shall be as determined by the Council itself.
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235. Coordination between Federation , State and Local Level : (1) The Federal
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Parliament shall make necessary laws in order to maintain coordination
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between the Federation , State and Local l evel.
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(2) The State Assembly may maintain coordination between the
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State and Village Bodies or Municipalities and settle political disputes, if any,
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that have arisen, in coordination with the conc erned Village Body ,
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Municipality and the District Coordination Committ ee.
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(3) The processes and procedures for the settlement of disputes
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under clause (2) sha ll be as provided for in the State l aw.
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236. Inter-State trade: Notwithstanding anything contained elsewhere in this
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Constitution, it is prohibited to make any kind of obstruction to the carriage of
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147
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goods or extension of services by a State or Local level to another State or
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Local l evel or to the carriage of goods or extension of services to any State or
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Local Level or to levy tax, fee or charge thereon or to make any kind of
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discrimination on the carriage or extension of such services or goods.
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237. Not to affect j urisdiction of Constitutional Bench of Supreme Court : Nothing
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