(1)There shall be prepared in such form and at such time, every year as may be prescribed, a budget in respect of the financial year next ensuing, snowing the estimated receipts and expenditure of the Institute and the same shall be forwarded to the State Government in such manner as ;may be prescribed.
(2) The Governing Body shall comply with such direction as may be given by the State Government and approve the budget finally.
(3) It shall not be lawful for the Institute to incur any expenditure either no sanctioned in the budget or in the case of funds granted to the Institute, subsequent to the Sanction of budget by the State Government or the Government of India, or any international organisation or foundation or any other agency save in accordance with the terms of such grant:
Provide that in the case of sudden or unforeseen circumstances, non-recurring expenditure not exceeding rupees fifteen thousand not sanctioned in the budget may be incurred by the Director and he shall immediately inform the State Government in respect of all such expenditure.