(1) The Lieutenant Governor shall in respect of every financial year cause to be laid before the Legislative Assembly of the Union territory of Jammu and Kashmir, a statement of the estimated receipts and expenditure of the Union territory for that year, in this Part referred to as the “annual financial statement”.
(2) The estimates of expenditure embodied in the annual financial statement shall show separately--
(a) the sums required to meet expenditure described by this Act as expenditure charged upon the Consolidated Fund of the Union territory of Jammu and Kashmir, and
(b) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of the Union territory of Jammu and Kashmir; and shall distinguish expenditure on revenue account from other expenditure.
(3) The following expenditure shall be expenditure charged on the Consolidated Fund of the Union territory of Jammu and Kashmir:--
(a) the emoluments and allowances of the Lieutenant Governor and other expenditure relating to his office;
(b) the charges payable in respect of loans advanced to the Union territory of Jammu and Kashmir from the Consolidated Fund of India including interest, sinking fund charges and redemption charges, and other expenditure connected therewith;
(c) the salaries and allowances of the Speaker and the Deputy Speaker of the Legislative Assembly;
(d) expenditure in respect of the salaries and allowances of Judges of High Court of Jammu and Kashmir;
(e) any sums required to satisfy any judgment, decree or award of any court or arbitral tribunal;
(f) expenditure incurred by the Lieutenant Governor in the discharge of his special responsibility;
(g) any other expenditure declared by the Constitution or by law made by Parliament or by the Legislative Assembly of the Union territory of Jammu and Kashmir to be so charged.