(1) The chairman shall prepare annually, on or before such date and in such form as may be prescribed, a budget estimate of the income and expenditure of the Panchayat for the next financial year.
Annual estimate of expenditure.
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(2) The Panchayat shall, as soon thereafter as may be, considei the budget estimate and approve the same without any modification or with such modifications or changes as it may consider necessaiv.
(3) A copy of the budget estimate shall bo forwarded without delay to the prescribed authority but not later than the 1st March,
(4) No expenditure shall be incurred by a Panchayat unless it is included in the budget estimate which has been approved by the Panchayat.
(5) A Panchayat may, at any time, during the year ior which annual budget estimate has been approved, cause a revised or supplementary budget estimate to be prepared which shall be considered and approved by the Panchayat in the same manner as an original budget estimate:
Provided that a copy of the revised or supplementary budget estimate shall be forwarded to the prescribed authoi ity within such lime as may be prescribed.
40, (1) The accounts of every Panchayat shall be audited annually Audit, m such manner as may be prescribed.
(2) The audit shall be carried out by such officer as the Chief Secretary may appoint in this behalf, and that officer shall, within one month of the completion of the audit, forward copies of the audit report to the Chief Secretary and the Panchayat.
(3) The Chief Secretary may, after1 considering the report and after making such further inquiry as h( may consider necessary, disallow any item which appears to h m contrary to law and surcharge the same on the person making or authorising the illegal payment, and shall—
(a) if such person is a member ui the Panchayat, proceed against him in the manner specified in sub-sections (2) and (3) of section 51; and
(b) if such person is not a member of the Panchayat, obtain the explanation of the person and direct such person to pay to the Panchayat the amount surcharged within a specified period; and if the amount is not paid within the specified period, the Chief Secretary shall cause it to be recovered as an arrear of land revenue and credited to the Panchayat Fund.
(4) Any person aggrieved by an order of the Chief Secretary under sub-section (3), may within thirty days of the date of the order, prefer an appeal to the Lieutenant-Governor whose decision on such appeal shall be final, 242 THE GAZETTE OF INDIA EXTRAORDINARY [PART li