The following points shall be taken into consideration while framing the budget estimates of receipts and expenditure for the next financial ¥ear.
(i) The estimate of receipts should be exhaustive and cautious and provide for the collections of entire loans outstanding and those falling d\le during the budget year.
(ti)Estimates should be as close and accurate as possible. A saving in an estimate is as much a financial irregularity as excess.
(iii)The estimate of receipts including grants shall be based on a :.comparison of the last two years receipt and in case of fixed receipts upon actual demand inclusive or any arrears and the probability of their realisation.
(iv)The estimate of expenditure on 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 of Income Tax etc .
(v) For contingent expenditure, the estimate shall be based upon the average actual expenditure for the last two years, exclusive of any special item of expenditure that may have been incurred during these year.
(vi)Furids allotted by Govt. ofIndiajState Govt.jZila Panchayat jJanpad PanchayatjGram Panchayat for specific schemes, functions, purposes shall be provided' only for those schemes, functions, purposes without any d~v~rsion fo~other purposes.
(vii)Provisions should be made for the due discharge of all liabilities in respect of loans and interest due there upon, contracted by the Gram Sabha ..
and for other'commitments fallirigdue for payment durlrig the-budget period.
" (viii)Variation ofmore' than ten percent, between the figures of the budget year and those of the previous year should be adequately explained.
(ix) Due account shall be taken of receipts from Anna Kosh, Vastu Kosh, Spram Kosh and Cash contributiops expected from people and institutions for aided or self help programmes.
(x)Due amount should be provided in the budget for incomplete works with a view to their accomplishment in the next fmancial year or years.
. (xi)The estimated amount in the budget should be rounded off to the nearest multiple of hundred ..For exampleRs. -640 should be noted as Rs." .
600 and Rs. 660 as Rs. 700. . ",
(xii)A detailed note explaining each Budgetary provision and justifying the amount so provided must also accompany the Budget .
. 7. Provision in Budget is .not a Sanction~-Sanction of the budget shall not by itself be deemed to authorise the incuning of any expenditure prqvided therein. The Gram Sabha inu~t approve the provisions for such scheme in the budget before expenditure can pe incurred on the scheme.