Section 6 in The M.P. Gram Panchayats (Budget Estimates) Rules, 1997
6. Guidelines for preparation of Budget Estimates.
- The following points shall be taken into consideration while framing the budget estimates or receipts all expenditure for the next financial year :-(i)The estimate of receipts should be exhaustive and cautious and provide for the collections of entire loans outstanding and those falling due during the; budget year.(ii)Estimates should be as close and accurate as possible. A saving in an estimate is as much a financial irregularity as an excess.(iii)The estimate of receipts including grants shall be based on a comparison of the last two years receipt and in case of fixed receipts upon actual demand inclusive of any arrears and the probability of their realisation.(iv)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 the actual sanctioned scale irrespective of savings and shall provide for the gross sanctioned pay without deduction of Income tax etc.(v)For contingent expenditure, the estimate shall be based upon the average actual expenditure for the past two years, exclusive of any special item of expenditure that may have been incurred during these year.(vi)Funds allotted by State Government and Zila Panchayat and Janpad Panchayat for specific functions shall be provided only for those functions without any diversion for other purposes.(vii)Provisions should be made for the due discharge of all liabilities in respect of loans and interest due thereupon, contracted by the Gram Panchayat and for other commitments falling due for payment during the budget period.(viii)Variation of more than ten percent, between the figures of the budget year and those of the previous year should be adequately explained.(ix)The closing balance lo be provided in the budget shall not be less than five per cent of the estimated receipts of the Gram Panchayat from taxes, cess, etc., collected under the provision of Chapter IX of the Act, without taking into consideration the Grant-in-aid or loans that may be received from State Government Zila Panchayat or Janpad Panchayat for specific purposes.(x)Due account shall be taken of cash contributions expected from people and institutions for aided or self help programmes.(xi)Due amount should be provided in the budget for incomplete works, with a view to their accomplishment in the next financial year or years.(xii)The estimated amount in the budget should be rounded off to the nearest multiple of hundred. For example, Rs. 640 should be noted as Rs. 600 and Rs. 660 as Rs. 700.(xiii)A detailed note explaining each budgetary provisions and justifying the amount so provided must also accompany the budget.
