Section 101 in The Maharashtra Municipal Councils, Nagar Panchayats And Industrial Townships Act, 1965
101. Budget.
(1)The Chief Officer shall each year [before the 31st day of December prepare, [***] [This portion was substituted for 'on or before the 31st day of December prepare and place before the Standing Committee' by Maharashtra 4 of 1974, Section 22(1)(a).], the annual budget containing] -(i)a statement showing the income and expenditure of the Council for the previous financial year;(ii)a statement showing the income and expenditure of the Council from the 1st day of April to the 30th day of November of the financial year then current and an estimate of the income and expenditure for the remaining portion of the current year;(iii)[ two estimates of the income and expenditure of the Council during the ensuing financial year and an estimate of the closing balance in the municipal fund at the end of the current year, as follows, namely:- [Clause (iii) was substituted by Maharashtra 15 of 2012, Section 18(a), (w.e.f. 4-8-2012).](a)an estimate 'A' of income and expenditure of the Council for the purposes of the Chapters other than Chapters XIII and XIV;(b)an estimate 'B' of income and expenditure of the Council for the purposes of Chapters XIII and XIV, in which the Chief Officer, shall, -(i)propose with reference to the provisions of Chapter IX such rates and extent of such municipal taxes as he thinks fit for the purposes of Chapters XIII and XIV;(ii)state the estimate of receipt of the aforesaid taxes or of any other receipts;(iii)provide for payment as they fall due, of all sums and of all instalments of principal and interest for which the Council may be liable under this Act in respect of matters falling under Chapters XIII and XIV;(iv)provide for such expenditure, if any, as he considers necessary to be incurred by the Council in the next ensuing financial year for the purposes of Chapters XIII and XIV.]:[Provided that a separate estimate of the income and expenditure of the Council during the ensuing financial year in respect of the services, under Chapter XIII and Chapter XIV, shall be prepared] [The proviso was added by Maharashtra 41 of 1994, Section 148(e).];(iv)proposals for any change in the taxes, fees or other charges to be levied for the ensuing year.(1A)[ The Chief Officer shall, while preparing the statement referred to in clause (i) of sub-section (1) append thereto a report indicating whether the following services were being provided in a subsidised manner and, if so, the extent of the subsidy, the source from which the subsidy was met and the sections or categories of the local population who were the beneficiaries of such subsidy, namely :-(a)water supply and disposal of sewage,(b)scavenging, transporting and disposal of wastes,(c)municipal transport, and(d)street lighting.Explanation. - A service shall be construed as being provided in a subsidised manner if its total cost, comprising the expenditure on operation and maintenance and adequate provision for depreciation of assets and for debt servicing, exceeds the income relatable to the rendering of that service.] [Sub-section (1-A) was inserted by Maharashtra 41 of 1994, Section 148(b).](2)Such statements and estimates shall be prepared under such heads of account in such form as may be prescribed under the Municipal Account Code framed under sub-section (1) of section 102.(2A)[ The President shall on or before the 31st day of December place before the Standing Committee the budget prepared under sub-sections (1) and (2) and call a meeting of the Standing Committee on or before the 15th day of January to consider the said budget. No business other than consideration of the budget shall be transacted at such meeting which shall be continued, if necessary, from time to time, upto the 31st day of January.(2B)If the President fails to place the budget before the Standing Committee or call a meeting of that Committee by the dates specified under sub-section (2A), the Collector shall, on receipt of an intimation to that effect from the Chief Officer or a Councillor, or suo motu, cause the budget to be prepared and placed before the Standing Committee through the Chief Officer, as soon as possible, at a meeting called by the Collector for that purpose.] [Sub-sections (2-A) and (2B) were inserted by Maharashtra 4 of 1974, Section 22(1)(b).](3)The Standing Committee shall consider the estimates and the proposals of the Chief Officer and submit them to the Council with such recommendations as it may deem fit to make, before the 31st day of January:Provided that, if the Standing Committee fails to make its recommendations before the 31st day of January, the President shall place the statements and estimates before the Council without the recommendations of the Standing Committee.(4)The Council shall consider the estimates prepared by the Chief Officer and the recommendations of the Standing Committee, if any, and adopt the budget estimates with or without modifications not later than the 28th day of February:[Provided that, when a Council is indebted to Government or Government has guaranteed any loan raised by a Council in the open market or otherwise, the budget of the Council shall be adopted only with the previous sanction of the Collector who shall accord such sanction strictly in accordance with the general or special directions of the Director in this behalf] [This proviso was substituted by Maharashtra 18 of 1993, Section 20(a).]:Provided further that, nothing, in the first proviso shall be deemed to prevent the Council during the first quarter of the financial year or till the budget is sanctioned whichever is earlier, from paying from its municipal fund, cost of the sanctioned establishment and contingencies:[Provided also that, if the Council fails to adopt the budget on or before the 28th day of February, the President shall forthwith submit the budget to the [Collector] [This proviso was inserted by Maharashtra 4 of 1974, Section 22(1)(c).] for his approval. The [Collector] [This word was substituted for the word 'Director' by Maharashtra 18 of 1993, Section 20(b).] shall, within thirty days from its receipt, approve such budget with or without modifications, or return it to the President, with such direction as he may think fit to give, for reconsideration. When any such budget is approved by the [Collector] [This word was substituted for the word 'Director' by Maharashtra 18 of 1993, Section 20(b).] it shall be deemed to have been duly sanctioned.](5)No budget shall be approved by the Council unless provision is made therein-(a)for the payment as they fall due of all sums and of all instalments of principal and interest for which the Council may be liable under this Act or any other law for the time being in force;(b)for the payment of contributions to the special funds constituted under this Act such as the Salary Reserve Fund and [the Consolidated Water Supply and Sewage Disposal Project Fund and the Water and Sewage Fund established under sections 90A and 90B] [These words, figures and letters were substituted for the words 'Water Supply Reserve Fund' by Maharashtra 15 of 2012, Section 18(b), (w.e.f. 4-8-2012).];(c)for the payment of salaries and allowances of the officers and servants [working under the Council] [These words were substituted for the words 'of the council' Maharashtra 4 of 1974, Section 22(1)(d).];(ca)[ for an amount equal to such per cent of the estimated current revenues of the Council as the State Government may, by general or special order, directs for improving the living and working conditions of its sanitary staff;] [Clause (ca) was inserted by Maharashtra 45 of 1975, Section 8.](d)for a minimum cash balance at the end of the year (exclusive of the balance, if any, in any statutory fund) of such amount as may be prescribed by rules by the State Government.(6)The budget so sanctioned may be varied or altered by the Council, from time to time, as circumstances may render desirable:Provided that, the Standing Committee or any other Committee appointed under this Act may within the budget so sanctioned, sanction reappropriations not exceeding such limits as may in respect of each class of Council be prescribed by rules, from one sub-head to another or from one minor head to another under the same major head and controlled by the same Committee. A statement of such reappropriations shall be submitted to the Council at its next meeting:Provided further that, no such reappropriations shall be done from the amounts earmarked towards the repayment of any loan and interest thereon and towards contributions to any fund or funds constituted under the provisions of this Act.(7)(a)Save in an emergency, no sum shall be expended by or on behalf of any Council unless such sum is included in the budget for the time being in force.(b)If any sum which is not so included in the budget, is expended in an emergency, the circumstances in which such sum was expended shall forthwith be reported by the President to the Council and the Collector, with an explanation of the way in which it is proposed to cover such extra expenditure.
