(1) All the moneys received by the Municipality shall constitute a fund, which shall be called the Municipal Fund, and shall be applied and disposed of, subject to the [Act No. 11 of 2019] 91 provisions of the Act or other laws as prescribed by the Government. The Municipal fund consists of,-
(a) all moneys received;
(b) all proceeds of the disposal of Municipal property;
(c) all rents on the Municipal property;
(d) taxes, cess, fees and fines collected;
(e) compensation on account of compounding offences;
(f) moneys received from Government or public bodies, or private individuals as Grant, donations, gift or deposit;
(g) interests and profits from banking transactions and any other transactions;
(h) loans, bonds etc., raised by the Municipality;
(i) accumulated fund in the Municipality standing to the credit before the commencement of this Act.
(2) All moneys payable to the credit of the municipal fund shall be received by the Commissioner and shall be forthwith paid into any Scheduled Commercial Bank to the credit of an account which shall be styled “the account of the municipal fund of the (said) Municipality” and all funds shall be kept under one single account.
(3) No payment shall be made by the Bank referred in sub-section (2), out of the Municipal Fund except on a cheque signed by the Commissioner or by the way of online fund transfer when authorized by the Commissioner.
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(4) For the purpose of strengthening of municipal fund and for taking up developmental projects, the Municipality may consider to raise funds through issue of municipal bonds or borrow from other sources, as per the notification issued by the Government.
(5) The Municipality shall also take necessary steps to obtain credit rating once in every two years, as specified by the Government.
BUDGET Budget estimate. 107. (1) Each Municipality is an extensive human settlement with high density of population, housing and having its complex requirements of planning, sanitation, water supply, transport and communication among others. Each of these towns undertake infrastructure works such as roads, drains, waste management and street lights to ensure a safe and healthy ambience for its citizens. It is thus important that budget for the municipality is planned in a systematic manner to take care of its obligatory requirements and developmental works so as to ensure a balanced overall healthy growth.
(2) In order to provide a robust growth impetus, the State Government shall provide a matching amount equal to the municipality wise devolution under the Finance Commission, over and above the own resources of the municipality. Any deficit in the matching grant contribution from the State Government shall be carried forward to the next year.
(3) In order to have a uniformity in the budget formation exercise and to ensure that there is an earmarked budget for all the essential functions of the municipality, the District Collector shall be a part of budget preparation exercise of the municipality and shall guide them in its preparation. He [Act No. 11 of 2019] 93 or she shall be present in the budget meeting of the municipality.
(4) The municipality shall prepare a budget showing the probable income and expenditure during the ensuing year.
While preparing the annual budget for the municipality, the required budget for the following components, in addition to the meeting the salary expenses, must be provided first for,-
(a) Proper upkeep of sanitation and budget requirement towards the sanitation vehicles, tools and sanitation instruments;
(b) Budget to meet the power bill towards street lights maintenance and water supply - municipality shall ensure that these bills are cleared in time and at such periodicity.
(c) Loan repayments if any;
(d) 10% of the annual budget as the “Green Budget” to meet the requirements of plantations and nursery;
The above provisions (a), (b), (c) and (d) will be obligatory and will be treated as charged provisions in the budget.
(5) After meeting the obligatory provisions as mentioned above, earmarking one-third of the balance budget on critical infrastructure requirements and works in newly merged areas, underdeveloped areas and the localities inhabited predominantly by the weaker sections, minorities and slums.
(6) In addition to and after having met the provisioning as above, the budget shall provide for the following,- 94 [Act No. 11 of 2019] Revised Budget.
Preparation of Annual Accounts.
(a) maintenance of parks, playgrounds and open spaces;
(b) construction and maintenance of “Vaikuntadhamams” (crematorium) and burial grounds;
(c) construction and maintenance of public toilets;
(d) at-least one integrated vegetarian and non vegetarian model market for each town and an additional market for every additional 50000 population-model market design may be provided by the Commissioner and Director of Municipal Administration;
(e) construction and maintenance of modern slaughter houses;
(f) scientific management of dump yards and scientific waste including solid and liquid management.
(7) Ward wise works shall be taken up once the above requirements have been met with.
(8) A copy of the budget shall be submitted to the Government at least a fortnight before the end of the financial year for the ensuing year.
108. In the course of a financial year, the Municipality shall not mandate the budget with regard to its income or expenditure it proposes unless the consent of the Government or any agency specified therefor is obtained.