(1) The Executive Council shall prepare with the assistance of the Finance Officer before such date as may be prescribed by the Statutes, the financial or budget estimates for the ensuing year and get them scrutinized by the Finance Committee and place the same before the Executive Council.
(2) The Executive Council may, in cases where expenditure in excess of the amount provided in the budget is to be incurred or in cases of urgency, for reasons to be recorded in writing, incur the expenditure subject to such restrictions and conditions as may be specified in the statutes. Where no provision has been made in the budget in respect of such excess expenditure, a report shall be made to the Finance Committee for its consideration and advice at its next meeting.
(3) The budget estimates of the University shall be prepared keeping in view the anticipated grants from the State Government and all other sources including the mobilization of its resources. However, supplementary budget estimates may be placed before the Executive Council in October every year in anticipation of any additional grants; but, no expenditure on this part shall be incurred unless such additional grants are received.
(4) The University shall, without the prior approval of the State Government, not divert for other purposes earmarked funds or revise the scales of pay of its staff or implement any scheme which involves any matching contribution from the State Government or a scheme which imposes a recurring liability on the State Government after the assistance from the sponsoring authorities ceases:
Provided that, no prior approval is necessary where a scheme or a programme which imposes a recurring liability on the University, but funded by the University Grants commission or the Central Government is met out of the interest derivable from a corpus or contribution or donation or endowment instituted by private sector or industry or individual or institutions and such a recurring liability does not cast any burden on the State Government and the entire expenditure in that respect is met out of the University funds.