Section 7 in Punjab Panchayat Samitis and Zila Parishads Finance, Budget and Accounts Rules, 2014
7. Budget of Panchayat Samiti.
- The Executive Officer shall prepare the budget of the Panchayat Samiti. While framing the budget under section 142, he shall keep in view the following principles:-(a)the estimates of the receipt shall be as accurate and realistic as possible and shall show the amounts which are expected to be received by the Panchayat Samiti from the Government by way of grants-in-aid for Rural development programmes, schemes or projects under the Act and liabilities or schemes transferred by other departments of the State Government, including the cost of permanent Government employees encadred under the Panchayat Samiti. This shall also include the amount expected to be realized by the Panchayat Samiti from local rates, taxes, fees on other sources. The arrears if any, standing over from past years for collection, shall only be included in the estimates to the extent these are expected to be actually realized. The peoples' contribution (in cash only), if expected to be received by the Panchayat Samiti for the execution of the Rural Development Schemes, etc or other department's schemes or its own schemes, should also be taken in to account and provided for under proper Head of Account. The expected amounts of grants-in aid for Rural Development Programme etc and schemes of other Government departments shall however, be intimated to the Panchayat Samiti by the Government.(b)the amounts of loan, if any, expected to be received from the Government and the recovery of loan already advanced by the Panchayat Samiti and interest thereon which is expected to be actually realized during the year shall also be provided for in the budget estimates.(c)in the case of fluctuating revenue or receipts, the actuals of the past three years and the revised estimates of the current year ordinarily afford the best guide in framing the estimates. Any general tendency either to stability, or increase or decrease which might also have influenced the figures of the past years and the new sums of revenue of which no account has been taken in the previous year. should also be kept in view for arriving at an accurate estimate of the Receipt. No income from any tax shall be shown on the Receipt side unless the imposition of tax is actually approved by the competent authority.(d)provision for anticipated refunds should also be made in the estimates under head "Deduct-Refund" by means of a deduct entry from the total estimated Receipts.(e)for the estimates of expenditure of the next year 4 the current year's estimates should not he accepted as the only basis. The need for every item should be scrutinized zealously before it is included in the estimates and only so much amount is provided for as is expected to be actually spent during the year.(f)the Panchayat Samiti should provide the entire amount of grants-in-aid expected to be received by it from the Government for the execution of various schemes as their main item of expenditure,(g)all other items of expenditure which the Panchayat Samiti has to incur out of its own resources under each or various heads of accounts should also be estimated and provided for under proper heads of accounts on the expenditure side.(h)adequate provisions should also be made for the due discharge of all liabilities to be liquidated in financial year particularly in respect of the following items(i)repayment of loans and interest thereon due to Government;(ii)the supplies and services including the pay and allowances of its staff and its members;(iii)amounts due to Government consequential to the provincialisation of schools and dispensaries;(iv)audit fee payable to the audit authority ;(v)contribution payable to Government on account of the cost of Panchayati Raj Public Works Circle;(vi)contribution payable towards Contributory Provident Fund of the employees;(vii)pension and leave salary Contributions of the permanent Government employees, who have opted for pension after their encadrcment under the Panchayat Samiti.(viii)pension and leave salary contribution of Government employees, who are on deputation in accordance with the terms and conditions of deputation; and(ix)contribution towards the District Panchayat Bhawan, Panchayat Samiti Rest House or State Vikas Bhawan or Guest House;(i)adequate provision must he made for the maintenance of minimum cash balance at the end of the year amounting to ten percent of the income of the Panchayat Samiti for the previous financial year in terms of section 141 of the Act.(j)while framing estimates for new expenditure, attention should be paid to the necessity of raising new resources to meet the additional demand and the proposals for the necessary measures viz, fresh taxation, increase in existing level of taxation, economic, etc., should be simultaneously drawn up and considered. Along with the budget, complete accounts of the receipts and expenditure for the financial year preceding the one during which the estimates are framed should also be furnished by the Panchayat Samiti. Any variation in the figures of the previous year and the ensuing year should also be explained.(k)budget estimates should also be supported with a statement showing the pay (including the increments) of staff on time scale of pay. The details of contingent and other charges shall be shown in a separate statement.(l)while framing an estimate for sanctioned establishment, whether permanent or temporary, the following procedure should be adopted:-(i)the sanctioned strength (including the rate and scale of pay) shall be shown together with the total cost thereof, provision being made w here pay is progressive or on a time-scale for all increments which shall be due during the currency of the budget year. Necessary provision should also be made for the payment of arrears of pay, if any. which can be foreseen and are likely to be paid during the currency of the budget year:(ii)from the total of items mentioned in sub-clause (i), a deduction should then be made for probable savings,(iii)the estimates for fluctuating items of expenditure such as "Allowances Honoraria" should be based on the current year's allotment viewed in the light of the average of the past three years actual's, allowances being made for any causes likely to modify that figure.
