Tht Executive Officer shall prepare the budget of the Panchayat Samiti. While framing the budget under section 142, he shall keep in view the following principles:- ·
(a) the estimates of the. receipt shall be as acciiratc and realistic as possible and shall show the amounts which are expected to be received by the Panchayat Samiti from the Government by way of grants-in-aid for Rural development programmes, schemes or projects under the Act and liabilities or schemes transferred by other departments of the !1tate Government, including the cost of pem1anent Government employees e'1cadred under the Panchayat Samiti. This shall also include the amount exJected to be realized by the Panchayat Samiti from local ra~es, taxes, fees o ·other sources. The arrears if any, standing over from past years for collection, shall only be included in the estimates to the extent these gre expected to be actually realized. The peoples' contribution (in cash only), ifexpected to be received by the Panchayat Samiti for the execution oft he Rural Development Schemes, etc or other department's schemes or its own schemes, should also be taken in to account and provided for under proper Head of Account. The expected amounts of grants-in aid for Rural Development Programme etc and schemes of other Government departments shall however, be intimated to the Panchayat Samiti by the Government.
(b) the amounts of Joan, if any, expected to be received from the Government and the recovery of loan already advanced by the Panchayat Samiti aod interest thereon wh.ich is expected to be actually realized during the year shall also be provided for in the budget estimates.
( c) in the case of fluctt1ating revenue or receipts, the actuals of the past three years and the revised estimates of the current year ordinarily afford the best guide in framing the estimates. Any general tendency either to stability, PUNJAB GOVT. GAZ. (EXTRA), JANUARY 9, 20 l 4 55 (PAUSA 19, 1935 SAKA) or increase or decrease which might also have influenced the figures of the past years ·and the new sums of revenue of which no accoum has been taken in the previous year. shou ld also be kept in view for arriving at an accuracc estimate of the Receipt. No income from any tax shal l be sh<>wn on 1he Receipt side unless the imposicion of tax is actually approved by the competenc atithority.
( d) provision for anticipated refunds should also be made in the estimates under head "Deduct-Refund" by means of a deduct entry from the total estimated Receipls.
(e) for the estimates of expenditure of the next year, the current year's estimates should •lOt be accepted as the only basis. The need for every item ., should be scrutinized zealously before it is included in the estimates and only so much amount is provided for as is expected to be actually spent d.uring the year.
(f) the Parnchayat Samiti should provide the entire amount of grants-in -aid expected to be received by i1 from the Government for the execution of . various schemes as their main item of expenditure.
(g) all other items of expenditure which the Panchayat Samiti has to incur out of its own resources under each or various heads of accounts should also be estimated and provided for under proper heads of account<: on the expenditure side.
(h) adequate provisions should also be made for the due discharge of all liabilities to be liquidated in financial year particularly in respect of the following items:·
(i) repayment of loans and interest thereon d11e to Government;
(ii) the supplies and services including the pay and allowances of its statT and its members;
(iii) amounts due to Gove'rnment consequential to the provincialisation of schools and dispensaries;
(iv) audit fee payable to the audit authority;
(V) contribution payable to Government on account of the cost of Panchayati Raj Public Works Circle;
(vi) contribution payable towards Contributory Provident Fund of the employees;
(vii) pension and leave salary Contributions of the permanent Government employees, who have opted for pension after their encadrement under the Parn:hayat Samiti.
56 PUNJAB GOVT. GAZ. (EXfRA},JANUARY9,2014 (PAUSAl9, 1935SAKA)
(viii) pension and leave salary con1ribution of Government employees, who are on depulation in accordance with the terms and conditions of depu1a1ion; and
(ix) contribution towards the Dis1ric1 Panchayal Bhawan, Panchaya1 Samiti Rest House or Stare Vikas Bhawan or Gues1 House;
(i) adequate provision must be made for the maintenance.of minimum cash balance al the end of the year amounling to len percent oflhe inc.ome of the Panchayat Samiti for the previous financial year in terms of section 141 of the Act
(j) while framing estimates for new expenditure, attention should be paid co lhe necessity of raising new resources to meet the additional demand and the proposals for the necessary measures viz, fresh taxation, increase in existing level oftaxarion, economic, etc., should be simultaneously drawn up and considered. Along with the budge!, complete accounts of the receipts and expenditure for lhe financial year preceding rheonc during which the estimates are framed should also be fumishcd by the Panchayat Samiti. Any variation in the figures of 1hc previous year and rhe ensuing yea• should also be explained.
(k) budge.r estimates should also be suppo11ed with a slatement showing the pay (including the increments) of staff on liine scale of pay. The details of contingent and other charges shall be :shown in a separate statement.
(I) while framing an estimate for sanctioned establishment, whether permanent or temporary; t~e following procedure should be adopted:-
(i) the sancrioned strength (including the rate apd scale of pay) shall be shown together with the total cost thereof, provision being made where pay is progressive or on a time- scale for all increments which shall be due during the currency of the budget year. Necessary provision sh?uld also be made for the payment of arrears of pay, if any, which can be foreseen and are likely to be paid during the currency of the budget year:
(ii) from the total of items mentioned in su!H:lause (i), a deduction should then be made for probable savings;
(iii) the estimates for fluctuating items of expenditure such as "Allowances Honoraria " should be based on the currem year's allotment viewed in the light of the average of the past 1hree years actual's, allowances being made for any causes likely to modify that figure.
PUNJAB OOVT. GAZ. (EXTRA), JANUARY 9. 2014 57 (PAUSA 19, 1935 SAKA)
8. Approval o r Uudget of Pancbayat Sa mi ti.· Budget estimates so S<e1ion 142 prepared shall be laid by the Executive Officer before the S1andong Ccimminee for finance, Audit and Planning for its close scrutiny or any modification as it may consider fit, where after the Standing Committee for~ inance. Audit and Planning shall submit the budget in Form FBA-1 to the Pa1.chayat Samiti in its meeting to be held on or before the twelfth February each year for consideration and taking action under section 142. The budget shall be placed before the Zila Parishad for its approval.