(1)The Pradhan of every Gram Panchayat shall at such time and in such manner as may be prescribed cause to be prepared in each year a budget of its estimated income and expenditure for the following year and shall place the budget for passing in the meeting of the Gram Panchayat to be convened for the purpose and shall submit the budget to the Panchayat Samiti having jurisdiction over the area of the Gram.(2)The Panchayat Samiti may, within such time as may be prescribed, either approve the budget or return it to the Gram Panchayat for such modifications as it may direct. On such modifications being made the budget shall be resubmitted within such time as may be prescribed for approval of the Panchayat Samiti. If approval of the Panchayat Samiti is not received by the Gram Panchayat within two months or by the last date of the year, whichever is earlier the budget shall be deemed to be approved by the Panchayat Samiti.(3)No expenditure shall be incurred unless the budget is approved by the Panchayat Samiti.(4)If before such date as may be prescribed a Gram Panchayat fails to submit the budget to the Panchayat Samiti, the prescribed authority may call upon the Gram Panchayat to furnish such information as it may require and may prepare the budget as required under sub-section (1) and submit it to the Panchayat Samiti for approval and the budget so prepared by the prescribed authority shall have effect as if it had been passed by the Gram Panchayat, and the prescribed authority shall submit it to the Panchayat Samiti.(5)On receipt of the budget from the prescribed authority under sub-section (4), the Panchayat Samiti shall approve the budget with such modification as deemed necessary and return it to the prescribed authority for onward transmission to the Gram Panchayat.
