Section 11 in The M.P. Zila Panchayats (Budget Estimates) Rules, 1997
11. Guidelines for preparation of Budget Estimates.
- The following points shall be taken into consideration while framing the estimate of Income and Expenditure for the next financial year :-(a)The estimate of income should be exhaustive and cautious and provide for the collections of entire loans outstanding and those falling due during the budget year;(b)Estimate should be as close and accurate as possible. A saving in an estimate is as much a financial irregularity as an excess;(c)The estimate of Income shall be based on a comparison of the last two years Income and in case of fixed Income upon actual demand inclusive of any arrears due and the probability of their realisation;(d)The estimate of expenditure of fixed establishment 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.;(e)The estimation of grant must be on realistic basis;(f)For contingent expenditure, the estimate shall be based upon the average actual expenditure for the past two years, exclusive of any special items of expenditure that may have been incurred during this year;(g)Funds allotted by Government and other agencies for specific functions shall be provided only for those functions without any diversion for other purposes;(h)Provision should be made for the discharge of all liabilities in respect of loans contracted by the Zila Panchayat and for all other commitments falling due for payment during the financial year;(i)A provision shall be made in the budget estimate to complete the incomplete works with a view to their accomplishment in the next financial year or years;(j)Variations of more than twenty per cent between the figure of the current budget and those of the previous year should be adequately explained;(k)The estimated amount in the budget should be rounded off to the nearest multiple of thousand. For example Rs. 3700 should be noted as 4000 and Rs. 3200 as Rs. 3000;(l)Due account should be taken of contributions from people and Institutions for aided self keeping programmes.
