Section 20 in The M.P. Zila Panchayat (Business) Rules, 1998
20. Procedure in the General Administration Committee in respect of financial matters.
(1)The General Administration Committee shall be specially in charge of the following functions :-(i)It shall be in charge of the accounts relating to loans granted by the Zila Panchayat and shall advice on the financial aspects of all transactions relating to such loans.(ii)It shall examine and report on all proposals for the imposition, increase, reduction or abolition of taxes, duties, cases or fees.(iii)It shall examine and report on all proposals for borrowing or the giving of a guarantee by the Zila Panchayat. It shall raise, such loans as have been duly authorised, and shall be in charge of all matters relating to the service of the loan or the discharge of guarantees.(iv)It shall prepare an estimate of the total receipts and expenditures of the Zila Panchayat in each year, and shall be responsible during the year for watching the state of the Zila Panchayat's balances.(v)In connection with the budget and supplementary estimates :-(a)It shall prepare a statement of estimates, receipts and expenditure to be laid before the Zila Panchayat in each year and supplementary estimates or demands for excess grant, which may be submitted to the Zila Panchayat for its opinion;(b)For the purpose of such preparation it shall obtain from the Standing Committee concerned material on which its estimate will be based and it shall be responsible for the correctness of the estimates prepared on the basis of material so supplied;(c)It shall examine and advice on all schemes of new expenditure for which it is proposed to make provisions in the estimates and shall be decline to provide in estimates for any scheme which has not been so examined.(vi)On receipt of a report from the Finance Officer the expenditure is being incurred for which there is no sufficient sanction, it shall require the Standing Committee concerned to obtain sanction or not to incur further expenditure.(vii)It shall advice the Standing Committee responsible for collection of revenue in the matter of progress and procedures.(2)The following, in particular and among others, shall be regarded matters affecting the finances of the Zila Panchayat:-(a)Incurring of expenditure in excess of the amount authorised;(b)Grant of an advance, allowances to employee of the Zila Panchayat from District Panchayat Fund or from Provident Fund Deposits, as the case may be;(c)Appointment of any category of employees in regular pay scale or daily wages or on wages without the permission of Prescribed Officer.(3)The General Administration Committee may call from any other Standing Committee any information or returns that it may consider necessary' to enable it to discharge its financial responsibilities.(4)In scrutinizing any proposal on which the General Administration Committee is consulted under Rule 3 of Chapter I it shall be the duty of the committee to point out if the proposal involves the breach of any principle of sound finance or any of the canons of financial properly.(i)Every office-bearer and officer of Zila Panchayat should exercise vigilance in respect of expenditure incurred from District Panchayat Fund in the same manner as a person of common prudence would exercise in respect of the expenditure out of his own money;(ii)No authority should exercise its powers of sanctioning expenditure to pass a resolution which would be directly or indirectly to its own advantage;(iii)Any authority shall not exercise his powers for sanctioning expenditure which directly or indirectly beneficial to him;(iv)District Panchayat Fund should not be utilized for benefit of a particular person or section of community unless :-(a)the amount of expenditure involved is insignificant; or(b)a claim for the amount could not be enfored in a Court of law; or(c)the expenditure is not in pursuance of a recognised policy or custom.(v)The amount of allowances such as travelling allowance granted to meet expenditure of a particular type, should not be so regulated so that the allowance become a source of profit to the recipients.(5)In case of unauthorised expenditure, the office bearers of the committee or the officers, as the case may be, who submits the proposal for expenditure and accords the sanction, shall be held responsible :Provided that the responsibility of such unauthorised expenditure shall be determined by the Prescribed Authority after due enquiry and giving a reasonable opportunity to the person likely to be affected.
