Section 5 in The M.P. Municipalities (Budget Estimates) Rules, 1962
5. No expenditure to be incurred without budget provisions.
- No expenditure shall be incurred for which there is no budget provision unless-(a)it can be met from ascertained savings in to the budget; or(b)(i)if the Council is not indebted to the State Government the expenditure has been sanctioned at a special meeting and if it would reduce the closing balance below the prescribed minimum, a sanction of the [Director of Local Bodies] [Substituted by 842-XVIII-II-73, dated 22-10-1973.] thereto has also been obtained; or(ii)if the Council is indebted to the State Government, sanction of the [Director of Local Bodies] [Substituted by 842-XVIII-II-73, dated 22-10-1973.] has been obtained.Notes. - (1) Subject to the limitations laid down in this rule, the President, or the Vice-President, or in the absence of these officers, the Chief Municipal Officer may, in emergent cases, sanction reappropriation of funds up to a limit of Rs. 500 in the case of Class I and II Municipalities and Rs. 300 in the case of Class III and IV Municipalities in each case in anticipation of the Council's sanction which shall be obtained at the next meeting.(2)Reappropriation statements in Form II appended to these rules shall be submitted as soon as the necessity for the same is foreseen and not after the expenditure has been taken in hand.(3)The general scheme of operations set forth in the budget estimates shall not be deliberately set-aside and savings in the provision for works shall not ordinarily be appropriated to meet other expenditure.(4)Earmarked grant shall be utilised for the purpose for which they are sanctioned and may not be used for any other purpose either temporarily or permanently without the previous sanction of the [Director of Local Bodies] [Substituted by 842-XVIII-II-73, dated 22-10-1973.].(5)The words "in the budget" occurring in sub-rule (a) above do not include an excess of actual over estimated opening balance or the estimated closing balance in excess of the fixed minimum balance.(6)Any sum set apart by a resolution of the Council for a particular purpose shall be utilised for the purpose for which it is earmarked and shall not be used for any other purpose either temporarily or permanently without the previous sanction of the [Director of the Local Bodies] [Substituted by 842-XVIII-II-73, dated 22-10-1973.]. Any sum set apart for a particular purpose in this manner shall be considered to be an addition to the prescribed closing balance of the Council so long as it remains unspent.
