Preparation and sanction of Budget

(1) Subject to such directions as may be issued by Government from time to time and rules as may be prescribed, the budget proposals containing detailed estimate of income and expenditure expected for the next year including the expenditure on the development plans prepared and sanctioned under section 175 shall be prepared by the respective standing committee considering the estimates and proposals submitted by Secretary and the officers dealing with the respective subjects, before the 15 th January every year and the same shall be submitted to the standing committee for finance. (IA)The standing committee for finance, after considering the proposals submitted under sub-section (1) and all the requirements under this Act shall prepare a budget showing the income and expenditure of the panchayat for the ensuing year and the Chairman of the said standing committee shall, not later than the first week of March, in a special meeting of the panchayat regarding the development and declaration therein by the president regarding the development and welfare works that are proposed to be taken up by the panchayat, present the same before the panchayat for its approval. (IB)The panchayat shall consider the budget proposals and finally pass the budget estimate with alterations if any, before the beginning of the year to which it relates.] (2)The working balance shown in the budget shall not be less than five per cent of the current year’s estimated receipts, excluding receipts from endowments, government grants contributions and debt account. (3)Receipts anticipated shall be accurate and elaborate and shall be accompanied by detailed notes and explanations of any specific difference from the preceding years actual receipts. (4)It shall contain necessary provisions to meet all the prescribed charges and repayment of debts. (5)If in the course of a year a Panchayat finds it necessary to modify the estimates shown in the budget with regard to its receipts or expenditure on the different services undertaken by it, the Standing Committee shall frame a supplemental or revised budget and forward it to the Panchayat for sanction. (6)Save in the case of a pressing emergency no sum shall be expended by or on behalf of a Panchayat unless such sum is included in the budget estimates in force at the time of incurring the expenditure. 168 169 170 Inserted by Act 13 of 1999. Omitted by Act 13 of 1999. Inserted by Act 13 of 1999. 171[(7) As soon as the budget is passed, copies thereof shall be furnished to the Government and to the officers authorised by the Government in this behalf and also to the auditors and such authorised officers shall prepare a consolidated statement of the budget estimate of the panchayats in each district: Provided that, the village panchayats and the Block Panchayats in a district shall furnish copies of the budget passed by them to the district panchayat and the District Planning Committee concerned. (8)A panchayat shall not either incur any expenditure in excess of the provision in the budget or where the budget of the year has not been passed before the first day of April, make any expenditure from that date.]

171[(7) As soon as the budget is passed, copies thereof shall be furnished to the Government and to the officers authorised by the Government in this behalf and also to the auditors and such authorised officers shall prepare a consolidated statement of the budget estimate of the panchayats in each district: Provided that, the village panchayats and the Block Panchayats in a district shall furnish copies of the budget passed by them to the district panchayat and the District Planning Committee concerned. (8)A panchayat shall not either incur any expenditure in excess of the provision in the budget or where the budget of the year has not been passed before the first day of April, make any expenditure from that date.]