Expenditure from municipal fund.

The Puducherry Municipalities Act, 1973

Infrastructure1973318 of 312 sections available1 chapters

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Chapter IX FINANCE

Statutory text

(1) The purposes to which the municipal fund may be applied include all objects expressly declared obligatory or discretionary by this Act or any rules made thereunder or by any other laws or rules, and in general everything necessary for, or conducive to, the safety, health, convenience of the inhabitants or to the amenities of the municipality and everything incidental to the administration; and the fund shall be applicable thereto within and outside the municipality, subject to such rules or special orders as the Government may prescribe or issue.
(2) It shall be the duty of every municipal council to provide for the payment of ---
- (i) any amount falling due on any loan contracted by it;
- (ii) salaries and allowances, pension, and gratuities and pensioner and provident fund contributions of its officers and servants;
- (iii) sums due under any decree or order of the court; and
- (iv) any other expenses rendered obligatory by or under this Act or any other law.
(3) The municipal council, may, with the sanction of the Government, contribute any fund for the defence of India.
- • The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974.
(4) The municipal council, may, with the sanction of the Director also-
- (i) contribute towards the expenses of any public exhibition, ceremony or entertainment in the municipal area;
- (ii) contribute to any charitable fund, or to the funds of any institution for the relief of the poor or the treatment of disease or infirmity or the reception of diseased or infirm persons or the investigations of the causes of the disease; and
- (iii) defray any other extraordinary charges.
  - • 199. Budget estimates. – (1) The municipal council shall in each year frame a budget showing the probable receipts and the expenditure which it proposes to incur during the following year and shall submit a copy of the budget to the Government before such date as may be fixed by it in that behalf.
(2) The budget shall contain provision adequate in the opinion of the Government for the due discharge of all liabilities in respect of loans contracted by the council and for the maintenance of a working balance; and if the budget as submitted to the Government fails to make these provisions, the Government may modify any part of the budget so as to ensure that such provisions are made.
- • 200. Revised or supplemental budget. – If in the course of a year a municipal council finds it necessary to modify the figures shown in the budget with regard to its receipts or to the distribution of the amounts to be expended on the different services it undertakes, it may submit a supplemental or revised budget provided that no alteration shall be made without the consent of the Government in the amount allotted for the service of debt or in the working balance.
- • 201. Reduction or transfer of budget grants. – The municipal council may, if it thinks necessary, at any time during the year -(a) reduce the amount of a budget-grant; or (b) transfer and add the amount, or a portion of the amount of one budget-grant to the amount of any other budget-grant:
- • The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974. Provided that --(i) due regard shall be had, when making any such reduction or transfer, to all the requirements of this Act;
- (ii) the aggregate sum of the budget-grants contained in the budget estimate adopted by the council shall not be increased except by the council under section 200.
  - • 202. Re-adjustment of income and expenditure to be made by the council during the course of the year, whenever necessary. -- (1) If it shall at any time during any year appear to the council that, notwithstanding any reduction of budget grants that may have been made under section 201, the income of the municipal fund during the said year will not suffice to meet the expenditure sanctioned in the budget estimate of the said year and to leave at the close of the year such cash balance as may be prescribed, it shall be incumbent on the council either to diminish the sanctioned expenditure of the year so far as it may be possible so to do with due regard to all the requirements of this Act or to have recourse to supplementary taxation, or to adopt both of these expedients in such measure as may be necessary to secure the cash balance at the close of the year.
(2) Whenever the council determines to have recourse to supplementary taxation in any year, it shall do so by increasing for the unexpired portion of the year, the rate at which any tax or duty is being levied, subject to the conditions, limitations and restrictions laid down in Chapter VIII and in this Chapter.
- • 203. Powers of the Government over budget. – The Government may direct a council to modify their estimates in keeping with the provisions of this Act or on grounds of any excessive or inadequate appropriations in any of the items in the budget. *204. Provisions as to unexpended budget-grant. – If the whole or any part of any budget-grant included in the budget estimates for a year remains unexpended at the close of that year, and the amount thereof has not been taken into account in the opening balance entered in the budget estimates of any of the next two following years the municipal council may sanction the expenditure of such budge-grant or the unexpended portion thereof during the next two following years for the completion of the purpose or object for which the budget-grant was originally made and not for any other purpose or object.

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