(1)(a)Every Gaon Panchayat shall prepare and lay before the kharif meeting of the Gaon Sabha a budget estimates of its income and expenditure for the year commencing on the 1st day of April next following.(b)Every Gaon Panchayat shall be prepare and lay before the rabi meeting of the Gaon Sabha its report including the account of its actual and expected receipts and expenditure for the year ending on the 31st March last preceding such meeting.(2)The Gaon Sabha may pass or refer back to the Gaon Panchayat the budget submitted to it for reconsideration with such direction as it my give in the manner prescribed and may likewise pass a recommendatory resolution in respect of the report or of any other matter.(3)If the budget is referred to the Gaon Panchayat for reconsideration as aforesaid, the Pradhan shall call an extraordinary meeting of the Gaon Sabha to be held within a fortnight of the said annual meeting and the Gaon Panchayat shall resubmit the budget at the said meeting with such modifications as may be necessary in the light of the direction of the Sabha, and the Gaon Sabha shall then pass the budget in the manner prescribed.(4)Subject to rules made in this behalf, the budget shall take effect after it has been approved by the prescribed authority and a Gaon Panchayat may incur any expenditure under any of the heads of the budget in excess of the amount approved under the head without variation or alteration of the budget with the approval of the prescribed authority.(5)If for any reason, a Gaon Panchayat fails to present its budget estimate at the kharif meeting of the Gaon Sabha or its report on the expected receipt and expenditure at the rabi meeting, the prescribed authority may frame the budget or the report, as the case may be. Such a budget or report shall again be laid before the Gaon Sabha concerned which may pass it even in an adjourned meeting, but it should be certified as approved, if the Gaon Sabha fails to do so.
