Preparation of budget

(1) The Commissioner shall, in consultation with the Chairperson and Wards Committees wherever such wards committees exist having regard to all the requirements of this Act and in accordance with the guidelines issued by the Government, prepare in such form as may be prescribed on or before the 1st day of January of each year a budget estimate of the income and expenditure of the municipality for the next financial year and place the same before the council with the approval of the Standing Committee wherever such Standing Committee exists, on or before the 20th day of January of each year. (2) While preparing the budget estimate under sub-section (1), the Commissioner may append thereto a report indicating whether the following services are being provided in a subsidised manner and if so, the extent of the subsidy, the source from which the subsidy was met, and the sections or categories of the local population who were the beneficiaries of such subsidy, namely:- (a) water supply and disposal of sewerage; (b) scavenging, transporting and disposal of wastes; and (c) street lighting: Provided that in any municipality where there are standing committees, the Commissioner shall place the budget estimate before the standing committee concerned for scrutiny of the budget estimate and to offer its remarks. (3) The council shall in a special meeting to be convened for this purpose consider the proposals contained in the budget estimate and approve the same with or without modifications as may be considered necessary on or before the end of February of each year. (4) A copy of the budget estimate as approved by the council shall be forwarded to the Director. (5) (a) If the Commissioner is of the opinion that the budget estimate as approved by the council contravenes any of the provisions of this Act or any rule, notification, by-laws, regulations made or issued under this Act or any order passed by the Government, he shall refer the budget estimate to the Director. (b) The Director shall direct the council to rectify the defects in the budget estimate of the municipality. (c) Where the council fails to rectify the defects as pointed out by the Director, the Commissioner shall give effect to the budget estimate as suggested by the Director. (6) The Commissioner shall make arrangements to publish in one prominent local Tamil newspaper the important features of the budget and the details of the works programmes in accordance with the rules as may be prescribed, not later than 31st day of July of that financial year.