(1) As from the appointed day, an Act passed by the Legislature of the State of Bihar or Uttar Pradesh before that day for the appropriation of any moneys out of the Consolidated Fund of the State to meet any expenditure in respect of any part of the financial year in which the appointed day falls shall have effect also in relation to the territories transferred to that State by the provisions of Part II and it shall be lawful for the State Government to spend any amount in those territories out of the amount authorised by such Act to be expended for any service in that State.
(2) The Governor of Bihar or of Uttar Pradesh may, after the appointed day, authorise such expenditure from the Consolidated Fund of the State as he deems necessary for any purpose or service in the territories transferred to that State for a period of not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislature of the State.
Section 12 - Reports relating to accounts of Bihar and Uttar Pradesh
The reports of the Comptroller and Auditor-General of India referred to in clause (2) of article 151 of the Constitution relating to the accounts of the State of Bihar or Uttar Pradesh in respect of any period prior to the appointed day shall be submitted to the Governor of each of the States of Bihar and Uttar Pradesh who shall cause them to be laid before the Legislature of the State.