(1) The fund authority shall be guided by the financial management principles specified under section 4 of the Act.
(2) The BBMP shall take appropriate measures to eliminate the revenue deficit and build up adequate revenue surplus. The deficit in the final approved budget by the Government cannot exceed 3% of total receipts of the previous year immediately preceding to the relevant current year. The projected increase in revenue cannot be more than the actual CAGR as calculated:
Provided that, the revenue deficit may exceed the limits specified under this rule due to grounds of unforeseen demands on the finances of the BBMP due to natural calamity subject to condition that the excess beyond limits arising due to natural calamities does not exceed the actual fiscal cost that can be attributed to the calamities.
Provided further that, the grounds specified in the first proviso shall be placed before the Council, as soon as may be, after it becomes likely that such deficit amount may exceed the aforesaid limits, with an accompanying report stating the likely extent of excess, and reasons thereof.