Section 14 in The M.P. Janapada Panchayat (Budget Estimates) Rules, 1997
14. Guidelines for preparation of budget estimate.
- The following points shall be taken into consideration while framing the estimate of Income and Expenditure for the next financial year :-(i)The estimate of income should be exhaustive and cautious and provide for the collections of entire loans outstanding and those falling due during the financial year;(ii)Estimate should be as close and accurate as possible. A saving in an estimate is as much a financial irregularity as tin excess;(iii)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;(iv)The estimation of grant must be on realistic basis;(v)The estimate of expenditure of fixed establishments 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 in Income Tax etc.;(vi)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 these years.(vii)Funds allotted by Government or Zila Panchayat for specific functions shall be provided only for those functions without any diversion for other purposes.(viii)Provision should be made for the discharge of all liabilities in respect of loans contracted by the Janapada Panchayat for payment during the year.(ix)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.(x)Variations of more than twenty percent between the figures of the budget year and those of the previous year should be adequately explained.(xi)The estimated amount in the budget should be rounded off to the nearest multiple of thousand. For example Rs. 4800 should be noted as Rs. 5000 and Rs. 4120 as Rs. 4000.(xii)Due account should be taken of contributions for people and institutions, for aided and self keeping programme.
