Preparation and sanction of Budgets

Preparation and sanction of Budgets.—

1. (1) The Executive Authority of the Village Panchayat and the Commissioner of the Panchayat Union Council shall, in each year, prepare and place before the Village Panchayat or the Panchayat Union Council, as the case may be, in such form and within such time as may be prescribed, a budget containing the estimate of income and expenditure for the forthcoming year.
2. (2) The Village Panchayat or the Panchayat Union Council shall, after considering the budget, sanction the same with or without modifications.
3. (3) The budget so sanctioned shall be submitted to the Inspector in the case of Village Panchayat and to the District Panchayat in the case of Panchayat Union Council, for information.
4. (4) If the Village Panchayat or the Panchayat Union Council fails to sanction the budget within the prescribed time, the Executive Authority or the Commissioner shall submit the budget to the Inspector or the District Panchayat, as the case may be, who shall sanction the same with such modifications as he deems fit.
5. (5) The Government may, by rules, provide for the preparation, submission and sanction of supplementary budgets.