Section 3(4) in The M.P. Municipalities (Budget Estimates) Rules, 1962
(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.]
