(1) A Municipality may, with the prior permission of the Government, obtain loans from any financial institution or any nationalised bank or 290 any other Municipality, and the Government may, if it considers so necessary, stand as the guarantor for payment.
(2) The Government may require a Municipality to observe such financial discipline in the matter of debt servicing including the creation of Sinking Fund, as the Government may think fit and proper and in doing so, the Government may prescribe different sets of rules for observance by different groups of Municipalities depending upon the circumstances and nature of cases.
100. Power to direct a Municipality to advance loan to another Municipality.
The Government may, direct a Municipality, keeping in view its financial position to advance loan to another municipality at such rat of interest, as may be prescribed Chapter - III Budget Estimate
101. Preparation of budget estimate:
(1) The Chief Officer of Municipality shall prepare in each year a budget estimate along with an Establishment Schedule of the Municipality for ensuing year, which shall be an estimate of the income and expenditure of the municipality.
(2) The. Chief Officer of the municipality shall place before Municipal Council or Town Council, as the case may be, not later than fifteenth day of January in each year, the budget estimate prepared under sub-section
(1) along with a copy of the Establishment Schedule of the Municipality.
(3) The Budget Estimate and the Establishment Schedule, shall be prepared in such form, in such manner and containing such particulars as may be prescribed.
(4) The statement referred to in sub-section (2) of section 119 shall be with the budget estimate.
102. Sanction of the budget estimate,—
(1) The Municipality shall consider the budget estimate, and adopt for the ensuing year the budget estimate with such changes, as it may consider necessary, not later than fifteenth day of February of that year and submit the budget estimate so adopted to the Government.
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(2) If the budget estimate is not adopted by the fifteenth day of February of that year, the Chief Officer of the Municipality shall submit the budget estimate to the Government.
(3) The budget estimate received by the Government, under sub-section (1) or sub-section (2), shall be returned to the Municipality before the thirtyfirst day of March of that year after sanction with or without modifications.
103. Power to alter budget grant,— A Municipality may from time to time, during the year,-
(a) increase the amount of any budget-grant under any head;
(b) make an additional budget-grant for the purpose of meeting any special or unforeseen requirement arising during the said year;
(c) Transfer the amount of any budget-grant or portion thereof under one head to the amount of budget grant under any other heads; or
(d) Reduce the amount of the budget-grant under any head.
Provided that no such increase in a budget grant or an additional budget grant of the transfer of an amount under budget grant or any portion thereof under any head to another head or reduction in the amount of budget-grant in any year, shall be made without the prior approval of the sanctioning authority referred to in section 102, and after such approval, it shall be deemed to be included in budget estimate finally adopted for the year.
Chapter -IV Accounts and Audit
104. Maintenance of Accounts:
The Executive Officer, in the case of a Municipal Council or Town Council, as the case may be, shall prepare and maintain accounts of receipts and expenditures of a Municipal Council or a Town Council in such form and in such manner, as may be prescribed.