Section 5: Provision for contingencies

5. Provision for contingencies (1) There shall be in the estimates of expenditure, in every fiscal year, a provision for contingencies to meet urgent and unforeseen expenditure in accordance with subsection (2). [Issue 9] F6 – 4 Revised Laws of Mauritius (2) Where the Minister is of opinion that it is necessary to incur expenditure— (a) on any service— (i) which, being a new service, is not provided for in the estimates of expenditure; or (ii) which will result in an excess of the sum provided for that service in the estimates of expenditure, and the expenditure cannot, without injury to the public service, be postponed; or (b) in case of natural disasters or other emergencies requiring exceptional expenditure, he may, by warrant under his hand, authorise from the provision under subsection (1), the payment of the expenditure. (3) Subject to subsection (4), the provision under subsection (1) shall not, in a fiscal year, exceed 3 per cent of the total estimates of expenditure excluding estimates in respect of capital projects for that fiscal year. (4) The percentage referred to in subsection (3) shall, in each fiscal year, be reduced so that, in the fiscal year ending 31 December 2012, the percentage shall not exceed 2 per cent, and that percentage shall remain the ceiling for every subsequent fiscal year. (5) Where in any fiscal year, expenditure is required to be incurred in excess of the provision under subsection (1), the expenditure shall, unless determined by the Minister to be incurred for the purpose of subsection (2) (b), be earmarked to be incurred in the following fiscal year. (6) Where, in a fiscal year, there is an increase in the percentage pursuant to subsection (5), the Minister shall present a plan to the Cabinet describing how, within the 2 fiscal years immediately following that fiscal year, the average annual percentage of the provisions for contingences to the estimates of expenditure shall be restored to the percentage referred to in subsection (4). [S. 5 repealed and replaced by s. 7 of Act 4 of 2008 w.e.f. 1 July 2008; amended by s. 8 of Act 1 of 2015 w.e.f. 1 January 2015.]