116. Annual Budget Estimates. - (1) Every village panchayat shall have prepared annually on or before the 15th December of the current year of such date not later than 31st December of the current year as may be approved by the taluka panchayat in such form and manner as may be prescribed in this behalf a budget estimate of its income an expenditure for the next year and forward the budget estimate to the taluka panchayat on or before-
(a)the 31st December of the current year where the budget estimate is prepared on or before the 15th December of the current year, or(b)the 15th January of the current year where the budget estimate is prepared on or before the approved date;Provided that the budget estimate shall be so prepared that at the end of the year the panchayat shall have at its credit a balance of not less than such minimum amount as may be prescribed in that behalf.(2)The taluka panchayat shall scrutinize the budget estimates and return to the panchayat within two months of its receipt with such observations and recommendations as it may make in respect of the budget estimate.(3)The panchayat shall thereupon approve the budget estimate on or before the 31st March of the current year with such modifications as it may think fit having regard to the observations and recommendations made by the taluka panchayat under sub-section (2).(4)Where any village panchayat has failed to comply with the provisions of subsection (3), it shall be lawful for the State Government to form an opinion that the panchayat is incompetent to perform the duties imposed on it or functions entrusted to it under the provisions of this Act.Explanation. - A village panchayat shall not be deemed to have failed to comply with the provisions of sub-section (3), if such failure has resulted on account of non-compliance by the taluka panchayat of provisions of sub-section (2).
