Budget estimate to be prepared by the Standing Committee

Budget estimate to be prepared by the Standing Committee.—

1. (1) The Standing Committee concerned shall by considering the estimate and proposals of the Secretary and the officials dealing with the respective subjects concerned submit their proposals to the Standing Committee for finance and after considering those proposals and all the requirements of this Act the Standing Committee for finance shall prepare budget estimate of the receipts and expenditure of the Municipality for the next year
2. (2) The budget estimate under sub-section(l) shall-
   • (a) provide for the payment, as they fall due, of all instalments of principal and interest for which the Municipality may be liable on account of loans; and
   • (b) allow for a cash balance at the end of the year of not less than five per cent of the revenue of the Municipality.