Section 166: Power of Government to sanction budget

(1) Every Board shall submit its budget and every alteration or revision thereof to the State Government through the Director of Local Bodies. (2) The State Government may at any time within two months from the receipt of a budget or revised budget under sub-section (1) - (a) approve the budget; or (b) return it to the Board for amendment on the ground that it fails to make adequate provision for - (i) the maintenance of such minimum closing balance, as may be prescribed, or (ii) the appropriation of any sum allotted to the Board by the State Government for the purpose for which it was allotted, or (iii) the repayment of loans or any other expenditure for which the Board is legally liable or (iv) any expenditure proposed in the budget, or (v) the continuance in future years of any recurring expenditure proposed in the budget. (3) Any board whose budget is returned for amendment under subsection (2) shall forthwith amend it to the satisfaction of the State Government and shall re-submit the budget as amended to the State Government which may then approve it. Explanation. - The word approve occurring in sub-sections (2) and (3) does not include the power to disapprove.