Every village panchayat shall contribute every year to the District Development Fund

constituted under section 223 a sum equal to such percentage not exceeding ten percent of its income from such sources as may be prescribed: Provided that where any village panchayat fails in any year to make a contribution under this section, it shall be lawful for the State Government to deduct such amount from the grant payable to the panchayat under section 219 in the next succeding year as may be sufficient to make the contribution and credit the same to the District Development Fund on behalf of the village panchayat.

1. (F) Budget Estimates 116. (1) Every village panchayat shall have prepared annualy on or before the 15th December of the current year of such date not later than 31st December of the current year as may be approved by the taluka Panchayat, in such form and manner as may be prescribed in this behalf a budget estimate of its income and expenditure for the next year and forward the budget estimate to the taluka panchayat on or before—
2. (a) the 31 st December of the current year where the budget estimate is prepared on or before the 15th December of the Current year, or
3. (b) the 15th January of the current year where the budget estimate is prepared on or before the approved date: Provided that the budget estimate shall be so prepared that at the end of the year the panchayat shall have at its credit a balance of not less than such minimum amount as may be prescribed in that behalf.

1. (2) The taluka panchayat shall scrutinize the budget estimates and return to the panchayat within two months of its receipt with such observations and recommendations as it may make in respect of the budget estimate.
2. (3) The panchayat shall thereupon approve the budget estimate on or before the 31 st March of the current year with such modifications as it may think fit having regard to the observations and recommendations made by the taluka panchayat under sub-section (2).
3. (4) Where any village panchayat has failed to comply with the provisions of sub-section (3), it shall be lawful for the State Government to form an opinion that the panchayat is incompetent to perform the duties imposed on it or functions entrusted to it under the provisions of this Act. Contribution to District Development Fund. Annual Budget Estimates. Secretary and servants of panchayats.

1993 : Guj. 18] Gujarat Panchayats Act, 1993. 47

Explanation.– A village panchayat shall not be deemed to have failed to comply with the provisions of sub-section (3), if such failure has resulted on account of non-compliance by the taluka panchayat of provisions of sub-section (2).

117. (1) A taluka panchayat may at any time during the year for which any budget

estimate has been approved cause a revised or supplementary budget estimate to be prepared. Every such revised or supplementary budget shall be considered and approved by the panchayat in the same manner as if it were an original annual budget estimate: Provided that the taluka panchayat shall scrutinise the budget and return to the panchayat within one month of its receipt.

1. (2) Reappropriation of fund in a budget estimate may be made from time to time subject to the same approval as is required for the budget estimates. 118. (1) Save in the case of a pressing emergency, no sum shall be expended by or on behalf of a village panchayat unless such sum is included in some budget estimate approved under seciion 116 or 117 and in force at the time of incurring the expenditure.
2. (2) If on a pressing emergency, any sum is expended otherwise than in accordance with sub-section (1), the circumstances shall be forthwith communicated in writing to the taluka panchayat, with an explanation of the way in which it is proposed by the panchayat to cover such extra expenditure.