Section 3 in The M.P. Municipalities (Budget Estimates) Rules, 1962
3. Form and manner of preparing budget estimates.
(1)An estimate of income and expenditure under sub-section (1) of Section 116 shall be prepared in Form 1 appended to these rules and a brief explanatory memorandum shall be enclosed with it.(2)The budget estimates shall include adequate provisions for the repayment of loan legally contracted by the Council.(3)The estimate shall be so prepared as to provide for a closing balance which a Council shall maintain at its credit at the end of the year and the amount of which shall be not less than five per cent of its recurring annual income.(4)(a)The estimate of income shall be based on a comparison of the last three years' receipt. The estimate from taxes and other sources for which there is a fixed demand shall however, be limited to the average of three years' actuals or to the year's demand plus a reasonable percentage of the recoverable arrears, whichever is less.(b)The estimate of total expenditure shall not exceed the average of actual receipts of the previous three years or the estimated receipts of the budget year, whichever is less. The total provision of expenditure for recurring items shall not exceed the average of past three years' receipts on account of fixed demand or the estimated receipt for fixed demand of the budget year, if the fixed demand has been increased for that year:[Provided that the opening balance also after leaving the amount to the extent of the prescribed minimum balance may be spent on non-recurring items subject to the approval of the [Director of Local Bodies] [Inserted by Notification No. 137-U-XVIII, dated 25-7-1973.].[Provided further that in cases where the amount involved is less than Rs. 5,000/- Deputy Director of Local Bodies may approve the same.] [Inserted by Notification No. 842-XVIII-II-73. dated 22-10-1973.](5)The estimate of expenditure on fixed establishments as well as fixed monthly recurring charges on account of rent, allowances, etc., shall be made according to actual sanctioned scale, irrespective of savings, and shall provide for the gross sanctioned pay without deduction of income-tax.(6)For contingent expenditure the estimates shall be based upon the average actual expenditure of the past three years, exclusive of any special items of expenditure that may have been incurred during those days.(7)The amount of any grants from the [Director of Local Bodies] [Substituted by Notification No. 842-XVIII-II-73. dated 22-10-1973.] unexpended at the beginning and end. respectively, of the financial year, shall be shown separately in the estimated opening and closing balances. Such amounts shall not be taken into consideration in determining whether the closing balance exceeds the minimum balance prescribed.(8)The revised estimate for the current year shall also be shown in the budget and it shall be based on the actual receipts and expenditure ascertained at the time when the budget estimate for the ensuing year is prepared and the probable receipts and expenditure during the remaining portion of the year. The revised estimate thus arrived at shall then be compared with (i) the adopted or sanctioned budget estimate for the current year, and (ii) the budget estimate proposed for the ensuing year and all important variation between the adopted or sanctioned budget estimate for the current year and the budget estimate proposed for ensuing year shall be explained in an explanatory note.(9)(a)In the case of works the Council shall meet during the month of July every year and draw up a list of new works in order of urgency for inclusion in the estimates of the ensuing year with reference to the amount which seems on general consideration likely to be available for expenditure on works. The Council shall also obtain administrative sanction as early as possible to those works which it is not empowered to sanction itself.(b)The Municipal Engineer or the Chief Municipal Officer in a Municipality where there is no Municipality Engineer, shall proceed to prepare detailed plans and estimates of all works consolidated by the Council and submit them for its final sanction. The Council shall then determine the works to be included in the budget and communicate the same to the Chief Municipal Officer.(c)No work for which plans and estimates have not been prepared and sanctioned may, unless in exceptional circumstances, be included in the budget.(d)Full particulars regarding all works costing over Rs. 500 shall be given in the annexures to the budget estimates.
