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THE STATES RE-ORGANIZATION ACT, 1956

Title : THE STATES RE-ORGANIZATION ACT, 1956

Year : 1956



In the case of every new State, the Governor or Rajpramukh of the corresponding State may at any time before the appointed day authorize such expenditure from the Consolidated Fund of the new State as he deems necessary for any period not extending beyond the 31st day of March, 1957:

Provided that the Governor of the new State may, after the appointed day, authorize such further expenditure from the Consolidated Fund of the State as he deems necessary for the said period.



(1) As from the appointed day, any Act passed by the Legislature of the State of Andhra or Madras before that day for the appropriation of any money out of the Consolidated Fund of the State to meet any expenditure in respect of any part of the financial year 1956-57 shall have effect also in relation to the transferred territory in that State, and it shall be lawful for the State Government to spend any amount in such transferred territory out of the amount authorized by such Act to be expended for any service in that State.

(2) The Governor of Andhra Pradesh or of Madras may, after the appointed day, authorize such expenditure from the Consolidated Fund of the State as he deems necessary for any purpose or service in the transferred territory of the State for any period not extending beyond the 31st day of March, 1957.



(1) Where the whole or any part of the territory of an existing State has been transferred to another existing State or to a new State by the provisions of Part II, the reports of the Comptroller and Auditor-General of India referred to in clause (2) of article 151.relating to the accounts of that existing State in respect of any period prior to the appointed day, shall be submitted to the Governor of such State or of each of such States as the President may be order specify and the Governor shall thereupon cause them to be laid before the Legislature of that State.

(2) The President may be order-

(a) Declare any expenditure incurred out of the Consolidated Fund of Bombay, Madhya Pradesh or Punjab or of any Part B or Part C State on any service during the financial year 1955-56 or any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorized, and

(b) Provide for any action to be taken on any matter arising out of the said reports.



The allowances and privileges of the Governor of Andhra Pradesh or of Madras or of each new State shall, until provision in that behalf is made by Parliament by law under clause (3) of article 158, be such as the President may, by order, determine.



(1) Section 3 of the Union Duties of Excise (Distribution) Act, 1953 (3 of 1953) and paragraphs 3 and 5.of the Constitution (Distribution of Revenues) Order, 1953, shall, in respect of the financial year 1956-57, have effect in the modified form set out in the Fourth Schedule.

(2) There shall be charged on the Consolidated Fund of India in respect of each of the three financial years 1957-58, 1958-59 and 1959-60 as grants-in-aid of-

(a) The State of Bombay, the sum, if any, by which 8.58 per cent. of the total of the amounts payable to that State under articles 270 and 272 falls short of 248.04 lakhs of rupees;

(b) The State of Kerala, the sum, if any, by which 61.91 per cent. of the total of the amounts payable to that State under the said articles falls short of 232.38 lakhs of rupees;

(c) The State of Madras, the sum, if any, by which 2.97 per cent. of the total of the amounts payable to that State under the said articles falls short of 24.65 lakhs of rupees;

(d) The State of Mysore, the sum, if any, by which 46.75 per cent. of the total of the amounts payable to that State under the said articles falls short of 289.80 lakhs of rupees.
Last updated on September, 2016

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