(1)If a panchayat fails to pass the budget of the panchayat for the succeeding financial year before the end of a financial year, which causes financial crisis or majority of its members resign from office or is disqualified, the Government shall, by notification in the Gazette, dissolve the panchayat from the date specified therein and a copy of the same forwarded to the State Election Commission by the Government.Provided that, the panchayat shall be given a reasonable opportunity of being heard before such dissolution.
