Power of Corporation to alter budget grants

86. Municipal Fund to be sole and to be held in trust Municipal Fund to be sole and to be held in trust.- There shall be one Municipal Fund and it shall be held by the Cooperation in trust in for the purposes of this act, subject to the provisions therein contained.

87. Credit of Moneys to Municipal Fund Credit of Moneys to Municipal Fund.-

1. (1) There shall be credited to the Municipal Fund-
   • (a) all moneys received by or on behalf of the corporation under the provisions of this Act or of any other law for the time being in force or under any contract;
   • (b) the balance standing to the credit of the Municipality of the city for which the Corporation is constituted‘
   • (c) all proceeds of the disposal of property by, or on behalf of the corporation;
   • (d) all rent accruing from any property of the Corporation;
   • (e) all moneys raised by any tax levied for the purposes of this act;
   • (f) all fees payable and levied under this Act, or any rules or bye-laws made there under;
   • (g) all fines payable imposed by a court under this Act or any rules or bye-laws made there under or under any other Act, the administration of which is entrusted to the Municipal Corporation;
   • (h) all moneys received by way of compensation or for compounding offences under the provisions of this Act;
     • (i) all moneys received by, or on behalf of the Corporation from the Government, public bodies, private bodies or private individuals by way of grant or gift or deposits; and
   • (j) all interest and profits arising from any investment or from any transaction in connection with, any money belonging to the Corporation; and
   • (k) all loans raised by the Corporation.
2. (2) Nothing in this section or in the last forgoing section shall in any way affect any obligations accepted by or imposed upon the Municipality concerned, by any declarations or rust executed by or on behalf of the Municipality or by any scheme settled under the charitable Endowment Act, 1890, for the administration of the trust. 88. Application from Municipal Fund Application from Municipal Fund.- The moneys from time to time credited to the Municipal Fund shall be applied in the following order of preference:-

Firstly, in making due provisions for the repayment of all loans payable by the Corporation under the provisions of Chapter IX.

Secondly, in discharge of all liabilities imposed on the Corporation by Section 3. Thirdly, in payment of all sums, charges and cost necessary for the purposes specified in section 66 and 67 and for otherwise carrying this act into effect, or of which the payment shall be duly or directly sanctioned under any of the provisions of this Act inclusive of –

1. (a) the expenses of every election of Councillors held under this Act.
2. (b) the salaries, allowances and contributions to pensions and leave salaries of the Commissioner and of any other office whose services may at the request of the Corporation be placed by the Government at the disposal of the Corporation.
3. (c) the salaries and allowances of Municipal officers and servants and all pensions ,gratuities, contribution and compassionate allowances payable under the provisions of this Act.
4. (d) the salaries and fees of experts for services or advice in connection with any matter arising out of the administration or undertaking of the Corporation.
5. (e) all expenses and costs incurred by the Corporation or by any Municipal officer on behalf of the Corporation in the exercise of any power conferred or the discharge of any duty imposed on it or them by this Act, including moneys which the Corporation is required or empowered to pay by way of compensation;
6. (f) every sum payable-
   • (i) by order of the Government or under an award made under the Arbitration Act, 1940;
   • (ii) under a decree or order of a civil or criminal court passed against the Commissioner,
   • (iii) under the compromise of any suit or other legal proceeding or claim;
7. (g) contributions to public institutions functioning in the interest of the inhabitants of the City;
8. (h) the cost of auditing the Municipal Accounts. 89. Constitution of special Funds Constitution of special Funds.- The Corporation may constitute such special funds as are prescribed by bye-laws and such other funds as may be necessary for the purposes of this Act. The Constitution and disposal of such funds shall be effected in the manner prescribed by bye-laws. 90. Receipt and disposal of payments on account of the Municipal Fund Receipts and disposal of payments on account of the Municipal Fund.- All moneys payable to the credit of the Municipal Fund shall be received by the Commissioner and shall be forthwith deposited with the Municipal treasury. The Municipal Commissioner shall deposit with the Government Treasury or any Scheduled or Cooperative Bank in the state any surplus funds with the Municipal Treasury which may not be required for the correct charges. 91. Drafts on the Municipal Fund Drafts on the Municipal Fund.-

1. (1) Subject to provisions of section 419 no payment shall be made by any Bank or society as aforesaid out of the municipal fund except upon a cheque signed in the prescribed manner.
2. (2) Payment of any sum due by the Corporation not exceeding one hundred rupees in amount, may be made in cash.
3. (3) Except in the case of salaries, allowances, Pensions, muster payments, advances and imprest money which may be made in cash payment of any sum due by the Corporation exceeding one hundred rupees in amount shall be made by means of a cheque signed as provided in such-section (1), and not in any other way. 92. Deposit of portion of Municipal Fund outside the City Deposit of portion of Municipal Fund outside the City.- Notwithstanding anything contained in section 90 or 91, the Commissioner, with the previous approval of the Mayor –in-Council may, from time to time remit any portion of the Municipal Fund to a Bank or other agency approved by the Government and carrying on business at any place beyond the City at which it may be desirable for the Corporation to have funds in deposit, and any money payable to the credit of or chargeable against the Municipal Fund which may, in the opinion of the Commissioner, be most conveniently paid into or out of the account of the Corporation at any such Bank or agency may be so paid. 93. Investment of surplus money Investment of surplus money.- Surplus money at the credit of the Municipal Fund, which cannot immediately or at an early date be applied to the purposes of this Act. Or of any loan raised there under, may from time to time be deposited in any Bank or Cooperative Society approved by the Government or may be invested in public securities.

94. Only sums covered by a budget grant to be expended from the Municipal Fund Only sums covered by a budget grant to be expended from the Municipal Fund .- Except as herein after provided , no payment of any sum shall be made out of the Municipal Fund unless the expenditure of the same is covered by a correct budget grant and sufficient balance of such budget grant is still available notwithstanding any reduction or transfer there of which may have been made under section 99 or 100. Provided that the following items shall be excepted from this prohibition, namely:-

1. (a) sums of which the expenditure has been sanctioned by the Mayor-in-Council;
2. (b) refunds of taxes and other moneys which the Commissioner is by this act authorized do make;
3. (c) repayments of moneys belonging to contract or other persons held in deposit and of money collected or credited to the Municipal Fund by mistake.
4. (d) sums which the Commissioner is by this Act or any other enactment required or empowered to pay by way of compensation;
5. (e) sums payable in an y of the circumstances mentioned in clause
6. (f) in section 88.\;
7. (f) expenses incurred by the Corporation in the exercise of the Powers conferred on it by section 285;
8. (g) costs incurred by the Commissioner under clause
9. (c) of sub section

1. (3) of section 69. 95. Municipal fund where to be expended Municipal fund where to be expended.- Expenditure by the Corporation out of the Municipal Fund shall, save as otherwise provided by this Act, be made within the city only, but may, by a resolution of the Corporation, supported by not less than half the total number of elected Councillors be made out side the city for any of the purposes of this Act. 96. Expenditure under certain of these exceptions to be reported by Commissioner to Mayor-in-Council Expenditure under certain of these exceptions to be reported by Commissioner to Mayor-in-Council.- Whenever any sum is expended by the Commissioner under clause (d),
   • (e) or
   • (g) of the proviso to section 94, he shall forthwith communicate the circumstances to the Mayor-in-Council which shall take such action under section 99 or recommend to the corporation to take such action under section 100 as shall, in the circumstances, appear lawful and expedient for covering the amount of the additional expenditure. 97. Estimates of income and expenditure to be prepared annually by Commissioner Estimates of income and expenditure to be prepared annually by Commissioner.-
2. (1) The Commissioner shall, on or before the 30th day of November, each year, have prepared and lay before the Mayor-in-Council in such form as the Committee shall from time to time approve.
   • (a) an estimate of the expenditure which must or should, in his opinion, be incurred by the Corporation in the next financial year from the Municipal Fund including:-
     • (i) the repayment of all loans or installments thereof with interest thereon which fall do during the financial year.
     • (ii) the discharge of liabilities imposed on the corporation by sub-section
3. (1) of section 3,
   • (iii) cash balance at the end of the said year of not less than such sum as may be prescribed by the Government.
   • (iv) the amounts, if any, which should in his opinion be credited to or expended from special fund.
   • (b) an estimate of all balance, if any, which will be available for appropriation or expenditure at the commencement of the next financial year.
   • (c) an estimate of the Corporations receipts and income for the next financial year other than from taxation.
   • (d) an estimate of the receipt existing taxation.
   • (e) a statement of proposals as to the taxation which it will, in his opinion be necessary or expedient to impose under the provisions of this act in the next financial year and an estimate of the receipt from such taxation. Explanation.- The balance, if any available in any special fund shall not be deemed to the available for re appropriation or expenditure at the commencement of the next financial year under clause(b) except in relation to expenditure which may be met from such fund under the bye-laws and the Commissioner may determine whether the whole or any part of such balance shall be taken into account as available for such expenditure at the commencement of the next financial year.
4. (2) The Mayor-in-Council shall, on or as soon as may be after the 30th day of November, consider the Budget estimate prepared by the Commissioner and made such modification and additions thereto as it shall think fit and submit the same to the Corporation not later than the 15th day of January. 98. Final adoption of budget estimate Final adoption of budget estimate.- The Corporation may on or before the 15th day of February, after considering the Mayor-in-Council proposals in this behalf, refer the budget estimates back to the Mayor-in=Council for further consideration or adopt the budget estimate or any revised budget estimates submitted to it, either as they stand or subject to such alterations as it deems expedient and shall submit copies of the budget as adopted by it to the Government for information: Provided that the budget estimates finally adopted by the Corporation shall fully provide for each of the matters specified in sub-clauses
   • (i) and
   • (iii) of clause
   • (a) of sub-section
5. (1) of section 97: Provided further that if the budget estimates are not finally adopted by the Corporation on or before the 31st day of March. The estimates recommended by the Mayor-in-Council shall be deemed to be the budget estimates finally adopted by the Corporation, until the estimates are so adopted. Provided also that if in the opinion of the State Government the condition of indebtedness of any Corporation is such that it is desirable to have control of the Government over its budget, the Government may direct that the budget of such corporation shall be subject to the sanction of the Government and the power of to vary or alter budget grants under sections 99 and 100 shall be subject to such conditions as may be prescribed by rules. 99. Power of Mayor-in-Council to reduce or transfer budget grants Power of Mayor-in-Council to reduce or transfer budget grants.- The Mayor-in-Council may from time, to time, during the financial year reduce or transfer the amount or a portion of the amount of one budget grant to the amount of any other budget grant under the same major head in the budget estimates: Provided that-
   • (a) due regard shall be had when making any such reduction or transfer to all the requirements of this Act; and
   • (b) every such reduction or transfer shall be brought to the notice of the Corporation at its next meeting.
6. (2) If any such reduction or transfer is of an amount exceeding five hundred rupees, the Corporation may pass with regard thereto such order as it thinks fit and it shall be incumbent on the Mayor-in-Council and the Commissioner to give effect to the said order.

Power of Corporation to alter budget grants.-

The Corporation may, from time to time during the financial year, transfer the amount or a portion of the amount of one budget grant from one major head to another in the budget estimate, or increase the amount of any budget grant; or make an additional budget grant for the purpose of meting any special or unforeseen requirement arising during the said year, but not in such a way as to bring the estimated cash balance at the close of the year below the amount fixed under sub-clause

1. (iii) of clause

1. (a) of section

1. (1) of section 97.