(1)The Gram Panchayat shall every year prepare in the manner prescribed by the Government, the estimated budget, and then place it before the Gram Sabha for prioritization and approval and after approval in Gram Sabha the same shall be placed before the Gram Panchayat. The Gram Panchayat shall, within one month from the date of approval by the Gram Sabha, sanction such budget without any deviation:Provided that if for any reasons, the budget is not sanctioned by the Gram Panchayat under this sub-section before the expiration of the period of one month aforesaid, the Gram Panchayat shall submit the budget to the Extension Officer (PR & RD), who shall sanction it with such modifications if any, as he thinks fit.(2)Where the budget is sanctioned by the Gram Panchayat, it shall be forwarded by the Gram Panchayat on or before such date as may be prescribed to the Extension Officer (PR&RD). The Extension Officer (PR&RD) shall make such suggestions or modifications as he may deem fit within one month from the date of its receipt and return it to the Gram Panchayat which shall consider the same and approve the budget, at a special meeting convened for the purpose; and the Budget so approved at such meeting shall be final. If the Extension Officer (PR&RD) fails to give the approval within the prescribed time above, the budget is deemed to have been approved and for such dereliction of duty the Extension Officer (PR&RD) is liable for disciplinary action, after providing an opportunity to him.(3)If during the course of a financial year, a Gram Panchayat finds it necessary to alter 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 undertaken by it, a supplementary or revised budget may be sanctioned as provided in sub-sections (1) and (2) above.
