No.Sov(LG)5-23-2001,dated 17th November,2001.—In exercise of the powers conferred upon him under sub-section (1) of section 191 of the Punjab Local Government Ordinance,2001,the Government of Punjab is pleased to make the following rules:–
PRELIMINARY AND DEFINITIONS
1. Short title and commencement. –
1) These rules may be called the Punjab Local Government (Budget) Rules,2001.
2) They shall come into force at once.
2. Definitions. – In these rules unless the subject or context otherwise requires:-
a) “Annual Budget Statement” or “Budget” for a financial year means the statement of the estimated receipts into, and the estimated expenditure from the Local Fund, for that year of District / city District Government ,Tehsil / Town Municipal Administration or Union Administration;
b) “Appropriation” means the amount provided in the budget estimates under a primary unit of appropriation or part of that amount placed at the disposal of a Disbursing officer, to meet expenditure on a specified object or item;
c) “Budget Estimate” relating to financial year means in relation to expenditure, the receipts expected to be realized during that year;
d) “Charged Expenditure” or “Expenditure charged upon Local fund” means such items of expenditure as are enumerated in rules 70 of these rules, and are not submitted to the vote of Council;
e) “ Collecting” in respect of a major head, sub-major head, a minor head of a sub-head relating to receipts, is the officer designated as such, by the District / City District Government ,Tehsil / Town Municipal Administration or Union Administration ,who is responsible for realization of receipts from the area of his jurisdiction ,creditable to such major head ,sub-major head or sub-head;
f) “Controlling officer” in respect or a major head ,a sub-major head, a minor head or a sub-head is the officer specified below , who exercises supervision and control over the disbursing and collecting officers subordinate to him:–
i) Executive District officer in case of District / City District Government ;
ii) Tehsil / Town Municipal officer in case of Tehsil / Town Municipal Administration ; and
iii) Union Nazim in case of Union Administration;
g) “ Council” means a Zila Council , Tehsil Council, Town Council ,Union Council , Village Council and Neighbourhood council ;
h) “Demand for Grant” is a proposal made to the council on the recommendations of the Nazim for withdrawal of a certain sum out of the Local Fund for expenditure which is granted, or deemed to have been granted;
i) “Form” means form appended to these rules ;
j) “Head of office” means :–
i) District officer in case of District / City District Government ;
ii) Tehsil / Town officer in case of Tehsil /Town Municipal Administration ; and
iii) Concerned Union secretary in case of Union Administration;
k) “Major Head” means a main head of account for the purposes of recording and classifying, receipts into ,and expenditure form, the Local Fund ;
l) “ Minor Head” means a head subordinate to a major head or a sub-major head;
m) “ presiding officer” means Naib Nazim of a Council or any on of the members of said council who has been elected on the panel of presiding officers in the first meeting of the budget session of the said Council presiding over the meeting of that Council during budget session;
n) “Re-appropriation” means the transfer of saving , in the appropriations of one or more units of appropriations ,to meet excess expenditure anticipated under another such unit.
o) “Schedule” means a schedule to the budget;
p) “ Sub-head” means a head subordinate to a minor head ;
q) “sub- major head” means an intermediate head of account introduced between a major head and minor heads under it ,when such minor heads are numerous ,and can conveniently be grouped together ,under such intermediate head;
3. Every District/City District Government, Tehsil/Town Municipal Administration and Union Administration shall be organized into such offices as may be specified under the Punjab Local Government Ordinance, 2001 or the rules and bye-laws framed thereunder.
4. The following shall be the Collecting Officers for the purposes of all items of revenue relating to the Local fund:-
a) District Officers notified as such by the District/City District Government;
b) Tehsil/Town Officers notified as such by the Tehsil/Town Municipal Administration; and
c) Union Secretary notified as such by Union Administration.
5. A District/City District Government and a Tehsil/Town Municipal Administration may from time to time specify the Assistant Collecting Officers for the Purposes for various items of income. Where an Assistant Collecting Officer is not under the control of the Collecting Officer, he shall be responsible to the Collecting Officer through the head of his office for the purpose of such collection.
1) A District/City District Government, Tehsil/Town Municipal Administration and Union Administration may from time to time declare any officer to be a Drawing and Disbursing Officer (D.D.O.) for the purposes of the Grant sanctioned for a Head or Sub-head. Every D.D.O. shall be responsible to the Controlling Officer through the Head of his office for the purposes of all disbursements.
2) A Drawing and Disbursing Officer may with the approval of concerned Controlling Officer delegate his powers under these rules.
7. No office of a District/City District Government or Tehsil/Town Municipal Administration shall issue an order or take any action which is likely to affect the finances of the concerned Local Government by involving increased expenditure, or a relinquishment of revenue without previous consultation with or approval or Executive District Officer (Finance and Planning) in case of District/City District Government and Tehsil/Town Officer (Finance) in case of Tehsil/Town Municipal Administration.
STRUCTURE OF THE BUDGET
8. The Budget shall extend over the Volumes I and II; that is to say:-
a) Volume I, which shall contain the Estimate of Income & Expenditure and Schedules; and
b) Volume II, which shall contain the Explanatory Memorandum.
9. Volume I of the Budget shall comprise: –
a) Estimate or Income: (Form B-I)
b) Estimate of Expenditure: (Form B-II)
c) Statement of the Demands for Grants: (Form B-III)
d) Financial Abstract: (Form B-IV)
e) Schedule of New Expenditure: (Form B-V)
f) Schedule of Development Expenditure: (Form B-VI)
g) Schedule of Charged Expenditure: (Form B-VII)
h) Schedule of Establishment: (Form B-VIII)
i) Schedule of Contingencies: (Form B-IX)
j) Schedule of Works: (Form B-X)
k) Schedule of Liabilities: (Form B-XI)
l) Schedule of Arrears: (Form B-XII)
m) Schedule of Miscellaneous Funds: (Form B-XIII)
n) Schedule of Taxes: (Form B-XIV)
10. The Explanatory Memorandum forming Volume-II of the Budget shall explain the provisions contained in the Estimates and Schedules. It shall be divided into parts and each part shall deal with Budget Estimates, Statements and Schedules to be appended thereto.
11. The Estimates of Income shall be in Form B-I and shall provide for the budget estimates for the ensuing year, the revised estimates for the current year, actual for the first 9 months of current year, the sanctioned estimates for the current year, and the actual figures for the preceding year. The various items of income specified in Form B-I may be adopted subject to the requirements of the local government. Where a local government has no income under the items specified in Form B-I such items may be omitted, and where the local government has an income under an item, which is not specified in the Form, such item may be added.
12. While explaining the various provisions in the Estimates of Revenue, the Explanatory Memorandum shall review the various sources of income how far such sources are productive or otherwise, to what extent such sources have been exploited and can still be exploited, and problems arising with regard to each item of income and the manner in which these are proposed to be tackled.
13. The Estimate of Expenditure shall be inform B-2 and shall provide for the budget estimates of the ensuing year, the revised estimates for the current year, the actual for the first nine months of current year, the sanctioned estimates for the current year, the actual for the first nine months of current year, the sanctioned estimates for the current year and the actual figures for the preceding year. Every Head shall be divided into a number of Sub-Heads as shown in Form B-2, or in such other manner as may be specified by the Local Government to suit its requirements. Every Sub-Head shall be divided into Units as shown in Form B-2, or in such manner as may be specified by the Local Government to suit its requirements. A provision shall be made in the Estimates of Expenditure against each unit. Such provision shall be referred to as an appropriation.
14. While explaining various provisions in the Estimates of Expenditure, the Explanatory Memorandum shall among other matters review the principal activities of the District/City District Government. Tehsil/Town Municipal Administration or Union Administration under various Sub-Heads, indicating the performance targets already achieved and proposed to be achieved in the ensuing year.
15. The Statement of the Demands for Grant shall be in Form B-3 wherein a demand for grant shall be raised for each Sub-Head.
16. While annotating the Statement of the Demands for Grants such points that need special notice of the Council shall be indicated and explained.
17. The Financial Abstracts shall be in Form B-4 and shall furnish the statistics with regard to the various items specified in the Form and such other statistical data as the Local Government may specify from time to time with a view to giving a clear picture of the financial operations and the principal activities of the District/City District Government, Tehsil/Town Municipal Administration or Union Administration.
18. While explaining the Financial Abstracts the Explanatory Memorandum shall contain a general review on the finances of the Local Government. This may include such graph, charts, pictogram and diagrams as may be necessary to illustrate the activities of the District/City District Government, Tehsil/Town Municipal Administration or Union Administration.
19. The Schedule of New Expenditure shall be in Form B-5 and shall provide for the details about each item of new expenditure included in the budget estimates.
20. While explaining the provisions in the Schedule of new Expenditure each item of new expenditure shall be numbered and full particular shall be given about the history of the case, the expenditure involved the justification for the proposed expenditure and the likely receipts, if any, however, full details of expenditure shall be given in the explanatory Memorandum.
21. The Schedule of Development Expenditure shall be in Form B-6 and shall provide for the details about each item of development expenditure.
22. While explaining the provisions in the Schedule of Development Expenditure, the Explanatory Memorandum shall review the Development Plan, the extent to which such plan has already been executed and the extent to which it is proposed to be executed in the ensuing year.
23. The Schedule of charged expenditure shall be in Form B-7 and shall provide for the details about each item of charged expenditure included in the budget estimate.
24. While explaining the provisions in the Schedule of Charged Expenditure each item of charged expenditure shall be numbered and full detail shall be furnished about each item in the Explanatory Memorandum.
25. The Schedule of Establishment shall be in Form B-8 and shall furnish the necessary particulars about the establishment and the establishment charges under various Sub-Heads.
26. While explaining the provisions in the Schedule of Establishment, full details shall be furnished about the staff employed under various offices and where new establishment is proposed to be employed during the ensuing year full justification therefore shall be given. However full details of expenditure shall be given in the explanatory Memorandum.
27. The Schedule of Contingencies shall be in Form B-9 and shall contain a detailed break up of the estimates of contingencies under various Sub-Heads.
28. While explaining the provisions in the Schedule of Contingencies, full details shall be furnished in justification of expenditure on the various items of contingencies with particular reference to new items and such items on which expenditure is proposed to be increased. However, full details of expenditure shall be given in the Explanatory Memorandum.
29. The Schedule or Works shall be in Form B-10 and shall contain a detailed break-up or various works provided for under various Sub-Heads. The Schedule of Works shall be divided into tow sections. The first section shall furnish the necessary particulars about the works pertaining to repairs and maintenance while the second section shall furnish the necessary particulars about all original works.
30. While explaining the provisions in the Schedule of Works, each work shall be numbered and full particulars shall be furnished about the justification for each work, the probable cost, the period during which it will be executed, the manner in which it will be financed, the agency through whom it will be executed, the likely benefits to accrue from the execution of works and full details shall be furnished for each work in the Explanatory Memorandum.
31. The Schedule of Liabilities shall be in Form B-Ii and shall contain estimates of the liabilities of the previous year proposed to be met during the ensuing year.
32. While explaining the provision in the Schedule of Liabilities, each item shall be numbered and full details shall be furnished about each item in the Explanatory Memorandum.
33. The Schedule of Arrears shall be in Form B-12 and shall furnish full particular about the arrears under various items of income and the estimates of revenue under the various items likely to be realized on account of arrears and included in the estimates of income.
34. While explaining the provisions in the Schedule of Arrears, each item shall be numbered and full details shall be furnished for each item, including the reasons for the accumulation of arrears and the steps proposed to be taken for the liquidation of arrears.
35. The Schedule of Miscellaneous Funds shall be in Form-13 and shall furnish particulars about opening balance, income, expenditure and closing balance with regard to Local Fund, suspense account, depreciation funds, provident and pension funds and accounts, investments and other funds maintained by a District/City District Government, Tehsil/Town Municipal Administration or Union Administration.
36. While explaining the provisions in the Schedule of Miscellaneous Funds, each fund shall be numbered and full details shall be furnished about each fund in the Explanatory Memorandum.
37. The Schedule of Taxes shall be in Form B-14 and shall contain a digest of the various taxation proposals prepared in accordance with the Punjab Local Government Ordinance, 2001 and rules framed there under.
38. While explaining the Schedule of Taxes, each tax shall be numbered and full particulars shall be furnished about each tax and its financial implications in the Explanatory Memorandum.
PRINCIPLES OF BUDGETING
39. Estimates of Revenue in the Budget shall be as accurate as possible, and shall neither be inflated nor under-pitched in making the estimate, the receipts during the preceding years, the receipt during the current year, the various economic factors regulating such receipts and other relevant factors shall be given due consideration.
40. No fresh receipt on account of Government grant or as a contribution by any other authority, statutory body, or person shall be shown or incorporated in the estimates on the Revenue side unless a definite communication in writing under taking the payment of such amount has been received from Government or the authority concerned, as the case may be.
41. No receipt shall be shown or incorporated in the estimates on the revenue side on account of any tax, fee, loan, charge or other levy unless such tax, fee, loan, charge or other levy has been sanctioned by the competent authority.
42. Except with the sanction of the Council no capital receipts shall be diverted to meet expenditure on Revenue Account.
43. A Local Government may earmark any receipt or expenditure on specified items, and if such items are earmarked, the receipt there for shall not be diverted to meet expenditure on any item other than the item for which such receipts are earmarked.
44. A Local Government may from time to time specify the percentage of the revenue income which shall be allocated to various offices for the purposes of revenue expenditure, and where such percentage has been fixed, the estimates of revenue expenditure shall be based according to such percentage.
45. Revenue income during any year shall be the total income excluding the income form capital receipts and the receipts from arrears.
46. Capital receipts shall mean the income from: –
a) the disposal of capital assets;
b) the sale of investments;
d) grants and other receipts of a non-recurring nature; and
e) advances and deposits.
47. In case the income provided under a head of account is not realized in full and it is less by more than 10% of the estimates provided in the budget, the collection Officer shall be accountable for less receipts and answerable to the Nazim.
48. Revenue Expenditure of a year shall be the total expenditure excluding the development expenditure and shall be shown separately in the budget.
49. Capital expenditure shall mean the expenditure for: —
a) the execution of original works;
b) the purchase of investments;
c) the acquisition of capital assets; and
d) advances & deposits.
50. Subject to the provisions of the Punjab Local Government Ordinance, 2001, the Local Government may fix the percentage of the revenue income beyond which the total expenditure on establishment or Revenue Account shall not exceed and where such percentage has been fixed, the expenditure on establishment on revenue account shall not exceed such percentage.
51. A Local Government may from time to time declare any service to be a commercial service. Where a service is declared as a commercial service the revenue expenditure for such service shall not exceed the revenue receipts therefrom.
52. Development Expenditure shall mean: –
a) the expenditure for an original work;
b) the expenditure for new service or an expansion in the existing service; and
c) the expenditure on purchase of assets.
53. The rise in revenue expenditure during any year shall not, except with the previous sanction of the Council, exceed the corresponding rise in revenue income. As a matter of principle additional liabilities on account of revenue expenditure shall not be undertaken unless the sources of income are developed in the first instance to meet such expenditure.
1) The estimates of expenditure shall be framed as accurately as possible and as far as possible be based on the principle of certainty and not on the principle of probability, all items or expenditure that can be foreseen shall be provided for taking care that the amount of provisions is restricted to the absoluter minimum necessity; provided that if the expenditure under any Head of Account to the close of the year is less by more than 10% of the actual allocation, the Head of the Office shall be responsible to explain such less expenditure to the satisfaction of the Accounts Committee concerned.
2) Similarly strict check may also be exercised on each and every budget provision under various Heads of Expenditure so that the expenditure does not exceed the approved budget allocation. In case of expenditure over and above of the approved budget provision the concerned officers will be held responsible. However, such expenditure can be regularized with the sanction of concerned Council under the rules in the respective year by revising the budget.
55. The estimate for the ensuing year shall be based on the revised estimates of the current year, but this shall not be the sole criterion for the framing of estimates. The need for every item shall be fully scrutinized in the contest of all relevant factors before it is included in the estimates.
56. No Item for expenditure shall be included in the estimates without proper consideration and exercise of foresight.
57. At the time of framing of the estimates for expenditure all items of expenditure shall be reviewed, and such economy as may be possible shall be made.
58. The surplus potential for the Local Government for a year shall be the excess of revenue income over revenue expenditure of Local Fund, Where there is no surplus potential the budget will not be balanced.
59. Where the revenue budget cannot be balanced, the concerned Nazim may direct a special study of the finances and as a consequence of such study require the Local Government to take such action for the improvement of its finances as may be specified.
60. The budget shall be development oriented, and the estimate on account of revenue expenditure shall be prepared on the basis of austerity and the provisions for development expenditure shall be progressively increased.
61. Where expenditure form a Local Fund on development is less than fifty percent of the Local Fund, the development component shall increase, in equal successive increments over three years, form its current level so as to ensure a fifty percent development expenditure by the end of the said three years.
1) The development budget shall be based on ownership incentive system and on the principles of bottom up planning by involving the Citizens Community Boards to identify development schemes for which such Boards shall contribute a part of the budgeted amount of the approved development scheme and receive upto 80% of the said budgeted amount from the Local Government as matching grants. The share of the Citizens Community Board in the cost of development scheme shall be deposited in the Local Fund and thereafter shall be spent as a whole to ensure proper accounting and auditing of the expenditure.
2) Not less than 50% of the development budget of the Local Government shall beset apart for providing matching grants as per provision of section 119 of the Punjab Local Government Ordinance, 2001.
3) The unspent balance of the amount referred in sub-rule (2) shall be brought forward to the following year’s budget in addition to the fresh allocation for that year.
4) The development budget shall be prioritized in accordance with the bottom-up planning system as laid down in section 119 of the Punjab Local Government Ordinance, 2001.
63. The Budget shall be a performance budget and it shall make due provision to ensure that the standard of performance in the various activities rises progressively and is not allowed to fall or deteriorate.
64. In every budget a provision shall be made for performance incentive bonuses.
65. A budget shall not be approved by a Council if —
a) the sums required to meet expenditures exceed the estimated receipts; and
b) the constraints specified in sub-sections (10) and (11) of section 109 and section 119 of the Punjab Local Government Ordinance, 2001 have not been complied with.
66. The District/City District Government, Tehsil/Town Municipal Administration or Union Administration shall make budgetary provisions for honoraria and allowances for the Nazims, and Naib Nazims and allowances for members of concerned Council, which shall be charged to the respective local fund.
67. The Schedule of new expenditure shall provide for the following types of expenditure, that is to say—
a) expenditure relating to a new service;
b) increased expenditure as a consequence of the re-cognation of or additions to any existing service;
c) expenditure on additional establishment required during the year;
d) expenditure on original establishment required during the year;
e) any other expenditure which is declared by Government to be New Expenditure for the purposes of these rules.
68. All items of New expenditure shall be scrutinized with due care before these are included in the schedule of New expenditure in scrutinizing such items the following principles shall be kept in view, that is to say–
a) the concerned District / City District Government Tehsil /Town Municipal Administration and Union Administration shall concentrate on the performance of functions assigned to it under the Punjab Local Government Ordinance, 2001 and additional liabilities ,as far as possible ,be avoided ;
b) the proposal for new expenditure shall be formulated on the basis of priority after taking stock of the overall requirements of various offices;
c) preference shall be given to development requirement and new expenditure on revenue account shall ,as far as possible ,be kept at the minimum level; and
d) with reference to development projects ; preference shall be given to such projects which do not involve a recurring cost.
69. When providing for a piece of new expenditure ,administrative difficulties and delays shall be kept mind and only such amount shall be provided which is likely to be spent during the course of the year.
70. The Schedule of charged Expenditure shall include –
a) all sums required to be contributed towards the conduct of election , maintenance of council service and the auditing of accounts;
b) budget allocation for Zila Council secretariat , honoraria and allowances of the Zila Nazim and Naib Nazim ,allowances of members of Zila Council in case of District / City District Government ;
c) budget allocation for honoraria and allowances of the Tehsil / Town Nazim and Naib Tehsil / Town Nazim and allowances of members of Tehsil / Town Council in case of Tehsil / Town Municipal Administration ;
d) budget allocation for honoraria and allowances of Union Nazim and Naib Union Nazim and allowances members of Union Council in case of Union Administration;
e) any sum required to satisfy any judgment , decree or award against the Local Government by any Court or Tribunal relating to local fund; and
f) any other expenditure declared to be Charged Expenditure under the Punjab Local Government Ordinance, 2001.
71. No new post shall be included in the Schedule of Establishment unless the creation of such post has been sanctioned by the competent authority ,
72. In framing estimates for sanctioned establishment ,whether permanent or temporary ,the pay including increment which are likely to be drawn by persons on duty during the year shall by provided for .No provision shall be made for appointment to by held in abeyance. Provision for those who are on deputation or absent in other ways and unlikely to return to the strength within the years shall be excluded.
73. For the purpose of the Schedule of Establishment, the establishment provided for under a sub-Head shall be divided into categories .Each category shall include officials in the same grade of pay . The estimates shall be prepared for each category and shall specify the number of posts in each category and the grades of pay and other particulars about the officials included in the category .The manner in which the estimates are worked out shall be explained in the Explanatory Memorandum.
74. The expenditure for the entire establishment charge don Local Fund shall be provided under the head “Establishment”.
75. The estimates under ‘Contingencies’ shall ,unless otherwise provided , include all charged other than the charges for establishment and the charges for execution of works.
76. Estimates for fluctuating items of expenditure under contingencies shall be based on the allotment for the current year viewed in the light of the average of the past three years’ actuals and allowances made for causes likely to modify the figure .Any excess over the current budget shall explained in the Explanatory Memorandum.
77. No original work shall be included in the estimates unless the competent authority has administratively approved such work.
78. While gibing particulars about original works in the Schedule of Works, the works in progress shall be distinguished from the new works. In estimating the amounts required for works in progress during the ensuing years, due allowance shall be made to ensure that there is no rush of expenditure during the last month of the current years, and the unspent grant for such works are carried forward to the next year.
79. No lump sum provision shall be made in the estimates, the details of which cannot be explained, nor shall any provision be made for an item which cannot be classified.
80. A sum not exceeding one percent of the revenue in come may be provided as “reserve” to meet unforeseen expenditure.
81. All estimates on the income as well as expenditure side shall be rounded to the nearest hundred i.e. figures below 50 shall be disregarded and all figures of 50 or above shall be entered as a hundred.
82. The closing balance of the Local Fund shall not be allowed to fall below five percent of the revenue income anticipated for the year. For the purposes of this rule, the investments made out of Local Fund shall be deemed to be a part of the closing balance.
PREPARATION AND APPROVAL OF THE BUDGET
83. The Executive District Officer (Finance and Planning) of District /City District Government, Tehsil / Town officer (Finance) of Tehsil /Town Municipal Administration and concerned Secretary of Union Administration shall be responsible for the preparation of the budget of the concerned Local Government and for the enforcement of the provisions of these rules.
84. On or before the first day of February each year, the Head of each office of Local Government shall forward his budget proposals to the Finance Office of the concerned Local Government through his controlling officer.
85. The budget proposals shall be prepared in the forms as specified in Chapter III with such adjustments as may be necessary to suit the requirements of the concerned office .The budget proposals shall be formulated in accordance with the principles specified in Chapter IV, and such instructions which the Finance Office may issue in this behalf from time to time.
86. All budget proposals received under rule 84 shall be scrutinized by the Finance office of the Local Government ,which may with the approval of the Nazim concerned and reasons to be specified recommend to—
a) Delete any provision;
b) Reduce or increase any provision; and
c) Insert any provision.
87. After the completion of scrutiny under rule 86 the budget proposals shall be consolidated in Volumes I and II in the forms specified in Chapter III.
88. The copies of budget proposals shall be forwarded to the Nazim of the concerned Local Government .In case of District /City District Government the copies of the budget proposals shall be forwarded to the Zila Nazim through District Coordination officer.
89. The Nazim shall present the budget for approval before the Zila Council ,Tehsil / Town Council or Union Council as the case may be, after such modifications as he deems necessary .
90. The budget shall be presented in the special meeting of Zila Council , Tehsil / Town Council or Union Council, as the case may be ,on such date and time fixed by the respective Nazim provided that such date shall not be later than first day of June.
91. The copies of the budget proposals after consolidation under rule 87 shall be forwarded to the members of respective Zila Council City District Council, Town/Tehsil Council or Union Council as the case may be, with the copies of agenda of the meeting by 20th of May.
92. No other business shall be taken up by the Council during the budget session
93. The budget shall be considered by the Council in three stages, that is to say—
b) Discussion; and
94. The Naib Nazim of concerned Council shall fix the periods for the stages mentioned under rule 93 and the periods thus fixed shall be specified in the agenda of the budget meeting.
95. At the presentation stage, the Nazim of respective Local Government shall present the budget, and explain it’s salient features in his Budget speech.
96. At the discussion stage, the discussion shall on the budget as a whole or on any question of policy involved therein with regard to income or expenditure.
97. At the voting stage there shall be no voting on the Estimates of Revenue and on the Estimates of Charged Expenditure. However, discussion on these estimates may be taken up by the members with permission of the presiding Officer.
98. The estimates for expenditure shall be presented on the Council in the forms of Demands for Grant and shall be taken up for consideration in the order provided in the budget.
99. Each Demand for Grant shall be embodied in the forms of a separate motion. The Nazim shall move in respect of each demand that a sum not exceeding a certain amount shall be granted in respect of each demand.
100. Any member may move a motion—
a) to omit or reduce any item, but not increase or alter the distinction of any grant; and
b) for token cut.
101. Notice of motion under rule 100 shall be given to be presiding officer at least two clear days before the day on which such grant or item comes up for discussion. Where a motion relates to a token cut, the specific purpose for which the token cut is made shall be specified.
102. No motion to omit or reduce any item or motion for a token cut shall be moved in respect to any item to expenditure which is a charged expenditure.
103. Where a motion intended to limit the debate to a subject-matter relating to an item, it shall be given notice of as an amendment to that particular item, and not to the total grant.
104. Motions shall be arranged in such order as the presiding officer may direct; provided that where several motions are mobbed to the same figures, priority shall be given to the motion proposing the greatest reduction and the other motions shall be arranged in to descending order of the amount of reduction proposed.
105. The presiding officer may fix time limit for speeches during the debate or motion to omit or reduce demands for grants.
106. A Council may assent to any demand or it may refuse to assent to any demand, subject to such reduction as may be specified.
107. Where a token cut is passed ,such token cut shall be taken at its face value ,and subject to such reduction as may be specified.
108. The Nazim shall amend the Budget in accordance with the decision of the Council under rules 106 and 107.The Budget thus amended shall be the approved budget of the respective Local Government.
1) The Union Nazim shall provide the copies of approved budget of Union Administration to the Tehsil / Town Municipal Administration and District / City District Government separately within seven days of its approval by Union Council.
2) The Tehsil / Town Nazim shall provide copies of the approved budget to the Zila Nazim and the Punjab Local Government commission within seven days of its approval by the Tehsil / Town council.
a) The Zila Nazim shall provide copies of approved budget of District / City District Government to all Tehsil / Town Municipal Administration and the Punjab Local Government Commission within seven days of its approval by Zila Council.
b) The Zila Nazim shall also consolidate the budget of all Union Administrations in his district and provide copy to the Punjab Local Government Commission by 3 Ist of July.
4) A summary of the approved budget of a Local Government shall also be published and publicised through press and any other manner as may be considered necessary by the Nazim of the Local Government.
ENFORCEMENT OF THE BUDGET
110. As soon as the budget is approved by the Council, the Finance office of the concerned Local Government shall communicate to all collecting officers the estimates of the income under various items of receipts.
111. Each collecting officer may from time to time and with the approval of the controlling officer and finance office of Local Government frame revenue collection program in Form B-15 setting up the targets for collection during specified periods, and the assistant Collecting officers shall ,as far as possible follow the program.
112. It shall be the duty of the collecting officer and Assistant Collecting officers to see that—
a) all income claimable is claimed; realised, and credited to the Local Fund of the Local Government ;and
b) all work of collection proceeds in accordance with the revenue collection program under rule 111, if any.
113. The Collecting officer shall forward through his Controlling officer to the Finance office by the seventh day of every month a Revenue collection statement in Form B-16 with a certificate that he has supplied the statement after internal audit of his satisfaction.
114. All Revenue Collection statements received under rule 113 shall be scrutinized by the Finance office concerned which may ,with the approval of Nazim ,make such observations thereon, as may be necessary .
115. As soon as may be after approval of the budget under rule 108 the Finance office shall communicate to the controlling officers, the Head of offices and the Drawing and Disbursing officers—-
a) the sanctioned Demands for Grants under various sub-heads; and
b) the appropriations for various units under each sub-head.
116. The provision against the Reserve shall be kept at the disposal of the Finance office.
117. An appropriation against each item shall cover all the charges including the liabilities of past years to be paid during the years to be adjusted in the accounts of the year.
118. An appropriation against an item shall be operative until the close of the financial year and any unspent balance shall lapse and shall not be available for utilization in the following years except insofar as it has been anticipated and included in the estimates for the following year.
119. Every Drawing and Disbursing officer shall be responsible for watching expenditure incurred against supply communicated to him.
120. No expenditure shall be incurred without the necessary appropriation, or in excess of the sanctioned appropriation.
121. No money shall be spent hastily or in al ill-considered manner simply because it is available. Expenditure shall be watched and controlled not with a view to adopting the appropriation to the expenditure, but the expenditure to appropriation.
122. Every head of officer shall forward through his controlling officer to the Finance officer by the seventh day of every month a statement of Disbursements in Form B-17 with a certificate that he has supplied the statement after internal audit of his satisfaction.
123. All statement of disbursement received under rule 122 shall be scrutinised by the Finance office which shall, with the approval of the Nazim ,communicate such observations thereon as may be necessary to the office concerned.
BUDGET REVISION AND BUDGET CONTROL
124. The Finance office of a Local Government shall from time to time review the operations of the budget and bring to the notice of the Nazim such financial irregularities in the administration of the budget as may come to its notice.
125. All reports made by the Finance office under rule 124 shall be considered by the Nazim and the Council ,who shall take steps as may be necessary re remedy the financial irregularities, if any.
126. When the accounts of a Council are audited ,the Audit Authority shall, among other matters, review the operations of the budget for the period of audit and point out the financial irregularities, if any ,in the administration of the budget.
127. The accounts committee concerned shall review the operation of budget of a Local Government relating to the year and specify financial irregularities, if any.
128. For the purposes of these rules, a financial irregularity shall include—
a) any expenditure incurred without sanction;
b) any expenditure incurred without sufficient appropriation;
c) any expenditure incurred without proper justification;
d) any extravagance or waste of Local Fund;
e) any case of loss of Local Government money or property due to fraud, neglect ,or misappropriation;
f) any case of over budgeting or under budgeting ;and
g) any breach of the provisions of these rules.
129. Where due to the lapse of time or any other unavoidable cause, any financial irregularity cannot be remedied, the concerned council may ,for reasons to be recorded , condone such financial irregularity.
130. At any time before the expiry of the Financial year to which a budget relates, a revised budget for the year may, if necessary ,be prepared by the District / city District Government ,Tehsil / Town Municipal Administration, or Union Administration and presented for approval by the respective Council as Provided Chapter V of the rules.
131. The Government may relax any of the provisions of these rules with reference to all or any of the Local Government in the Province.
SECRETRY TO GOVERNMENT OF THE PUNJAB LOCAL GOVERNMENT AND RULEL DEVELOPMENT DEPARTMENT
NO.& Date Even
ESTIMATE OF INCOME
MMajor head. MMinor head/Sub -head. Actuals of the preceding year. Sanctioned Budget Estimates of the current year. Actuals of first nine months of current year. Revised Estimates of the current year, if any Budget Estimates for the next year.
(As per Second Schedule part –1 for Zila Council ,part –II for Town / Tehsil Council and part –III for Union Council respectively).
1. Name of Tax.
3. and so on.
Total of A.
1. Name of Fees.
3. and so on.
Total of B.
1.Name of Toll.
3.and so on.
Total of C.
1.Name of Rate.
3.and so on.
Total of D.
1.Name of Charge.
3. and so on.
Total of E.
1.Name of Fine.
3.and so on.
Total of F.
1.Name of Rent .
3.and so on.
Total of G.
H) Grants (of recurring nature).
1.Govt.Teanster on account of Octroi & Zila Tax.
2.Govt. Transfer on account of Establishment Charges of decentralized offices.
3.Any other Government Grant or Transfer from other statutory bodies / Local Governments.
4.and so on.
Total of H.
I) Contributions (of recurring nature )
J) Other receipts.
Total of (Revenue Income)
II) Capital Income.(Receipts).
1.Sale of Assets / Property
3.Sale of Securities/ Investments.
4.Grant & other receipts of non-recurring nature.
5.Advances & Deposits.
Total of II(Capital Income).
Grand Total of Income .
ESTIMATE OF EXPENDITURE
MMajor Head. Particulars of Expenditure/Minor Head / sub-head Actuals of the preceding year. Sanctioned budget of Estimates of the current year. Actuals of first nine months of current year. Revised Estimate of the current year. Bbudget Estimates for the next year.
A) Name of Department / Section
i) Name of Branch.
iii) and so on .
Total of A.
B) Name of Department / Section.
i) Name of Branch.
iii) and so on.
Total of B.
C) and D) Like above.
Total of I(Establishment Expenditure)
A) Name of Department / Section.
i) Name of Branch.
iii) and so on.
Total of A.
B to Z like above.
Total of II(Contingency)
A) Name of Department / Section.
i) Name of Branch/ Sub- head
iii)and so on.
Total of A
B to Z like above.
Total of III(Works).
IV) Grants / Transfers
A) Name of Local Govt.
i) Tehsil Council / Union Council / Community Board
iii)and so on.
Total of A.
Total of IV (Grants / Transfers)
A) Name of Department / Section
i) Name of Branch.
iii) and so on.
Total of A.
Total of V(Misc.)
Grand Total (I to V) of Expenditure.
DEMANDS OF GRANTS
Head of Account
Sub-head of Account
Demand for Grant
Sr .No. Head of Account Budget year Current year Preceding year
(See Rule 19)
SCHEDULE OF NEW EXPENDITURE
Head Article. I sub-head Item of new Expenditure Article II .Budget provision
(See Rule 21)
SCHEDULE OF DEVELOPMENT EXPENDITURE
Head Sub-head Item of Development Expenditure Provision in the Development plan Amount likely to be spent by the end of the current year Budget provision.
Development Expenditure from Local Fund and provincial Fund of respective Council shall be mentioned separately.
(See Rule 23)
SCHEDULE OF CHARGED EXPENDITURE
Sub-head Item of charged Expenditure Budget Estimates Revised Estimate of the current Year Actual for nine months Sanctioned Estimate of the current year Actual of the preceding year.
Rs. Rs. Rs. Rs. Rs.
Form B .8
(See Rule 25)
SCHEDULE OF ESTABLISHMENT
Head Ssub-Head Gategories of Establishment branch wise & strength Ggrade of pay Pay Compensatory Allowances Leave Allowance Pension Provident Fund Contribution. Total
Rs. Rs Rs. Rs. Rs. Rs.
(See Rule 27)
SCHEDULE OF CONTINGENCIES
Head Sub-head Item of Contingencies Budget Estimate Revised Estimate of the current year Budget Estimate of the current year Actual of the preceding year
Rs. Rs. Rs. Rs.
Part I …. Original
Part II ….. Repair & Maintenance
Form B. 11
(See Rule 31)
SCHEDULE OF LIABLITIES
Head Sub-Head Particulars of Liabilities Budget Estimate.
Form B. 12
(See Rule 33)
SCHEDULE OF ARREARS
Sub Head Particulars of arrears Total Amount Proposed Budget Reasons of Non-Recovery
Form B. 13
(See Rule 35)
SCHEDUEL OF MISC. FUNDS
Budget Estimate Sanctioned Budget
Estimate of the
Current year. Actuals of First Nine Months of the Current year Revised Estimate
of the current
year Budget Estimate
for the next
Form B. 14
(See Rule 37)
SCHEDUEL OF TAXES
Proposed Head/Sub Head Expected Income Expected Date
of Imposition Objectives