Druk Gyalpo Relief Fund Act, 2012

Link to law: http://www.nationalcouncil.bt/assets/uploads/docs/acts/2014/Druk_Gyalpo_Relief_Fund_Act_2012eng9th.pdf

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Druk Gyalpo Relief Fund

Act 2012

TABLE OF CONTENTS

Title Page

Preamble 1

Chapter 1 Preliminary 1

Chapter 2 Establishment 2

Chapter 3 Fund Replenishment 3

Chapter 4 Investments 4

Chapter 5 Operation 5

Chapter 6 Accounting 5

Chapter 7 Miscellaneous 6

Preamble

Whereas Article 14 Section 12, of the Constitution mandates the

establishment of a Relief Fund;

Whereas the Druk Gyalpo has the prerogative to use this Fund

for urgent and unforeseen humanitarian relief; and

Whereas the Druk Gyalpo may be pleased to grant urgent relief

to the people of Bhutan in times of unforeseen calamities.

The Parliament of the Kingdom of Bhutan do hereby enact the

Druk Gyalpo Relief Fund Bill 2012 on the 30
th

Day of the 4
th

Month of Water Male Dragon Year of the Bhutanese Calendar

corresponding to the 19
th

Day of June 2012 at its 9
th

Session of

the First Parliament.

Chapter 1

Preliminary

Title and Commencement

1. This Act shall:

a. Be called The DRUK GYALPO RELIEF FUND

ACT 2012;

b. Come into force on the………..day of

the………….month of the……….year,

corresponding to the ………day of the

…….month of the…………year; and

c. Extend to the whole of Bhutan.

Repeal

2. This Act hereby repeals any provisions of any law, by-

law, rules or regulation which is inconsistent with this

Act

Chapter 2

Establishment

3. The Office of the Gyalpoi Zimpon shall open an account

with a bank in the country titled The Druk Gyalpo Relief

Fund.

4. The Druk Gyalpo Relief Fund shall consist of the

following:

a) Government deposits;

b) Donations from Bhutanese individuals and entities;

c) Donations from foreign individuals and entities; and

d) Interest and other incomes that may be accrued from

the investments made under Section 11.

5. The Ministry of Finance shall deposit an initial amount

of Nu. 20 million into the Fund account.

6. The Ministry of Finance shall increase the Fund

annually by Nu. 20 million until the balance reaches the

ceiling of Nu. 100 million.

7. Further increase in the government deposits beyond Nu.

100 million shall be subject to the approval of

Parliament.

8. Donations made to the Fund from individual persons,

private entities and non-governmental organizations

within and outside country will not be considered when

determining the maximum ceiling of the fund, Nu. 100

million.

Chapter 3

Fund Replenishment

9. Any expenditure from the Fund shall be replenished by

an amount required to maintain the Fund at Nu. 100

million in the following financial year immediately upon

the approval of the national budget.

10. This replenishment of the expenditure in the Fund

account shall be in addition to the annual deposit of

Nu. 20 million as mentioned above in Section 6, Chapter

2.

11. If the need arises for higher amounts than the balance in

the Fund Account at any particular time during the

financial year, the additional amount shall be made

available immediately and included in the

supplementary budget appropriation bill.

Chapter 4

Investments

12. The Office of the Gyalpoi Zimpon may from time to

time invest in short-term interest bearing deposits or

freely convertible securities any or all sums to the credit

of the Relief Fund account which may not be

immediately required for any relief purposes.

13. The returns from such investments shall be credited to

the Fund account.

14. These returns shall be taken into account in reaching the

balance of the account to the ceiling of Nu. 100 million.

Chapter 5

Operation

15. The Fund shall be used on the command of the Druk

Gyalpo.

16. The Fund account shall be maintained and operated by

the Office of the Gyalpoi Zimpon.

Chapter 6

Accounting

17. The audited annual accounts of the Fund shall be

prepared and submitted to the Druk Gyalpo and the

Ministry of Finance.

18. The assets and the securities belonging to the Fund shall

be valued at the market value on the last day of such

year.

Chapter 7

Miscellaneous

Rule Making Power

19. The Office of the Gyalpoi Zimpon shall make rules for

effective implementation of this Act.

Amendment

20. The amendment of this Act by way of addition, variation

or repeal shall be effected by a simple majority of the

respective Houses or vote of not less than two-thirds of

the total members of Parliament present and voting on a

motion submitted by one-third of the members of either

House.

Authoritative Text

21. The Dzongkha text shall be the authoritative text, if

there exists any difference in meaning between the

Dzongkha and the English text.