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Section 87

Preparation of Budget Estimate of Municipality

(1) The Chief Municipal Officer shall prepare in each year, before fifteenth January, a budget estimate alongwith an establishment schedule of the Municipality for the ensuing financial year, and such budget estimate shall be an estimate of the actual income and expenditure of the Municipality. However, before submission to the Municipality for approval, the financial estimates shall be approved by the Finance Committee. (2) Subject to the provisions of section 4 and sub-section (2) of section 79, the budget estimate shall separately state the income and the expenditure of the Municipality to be received and incurred in terms of the various heads of accounts: Provided that without prior approval of the State Government, no proposal regarding- (i) creation of new posts or filling of vacant posts; (ii) purchase of new vehicles; (iii) purchase of immovable property; (iv) making grant-in-aid to any private institution or person; or (v) for any other matter as may be directed by the State Government, from time to time, shall be included in the budget. (3) The budget estimate shall state the rates at which various taxes, surcharges, cesses and fees shall be levied by the Municipality in the year next following. (4) The budget estimate shall state the amount of money to be raised as loan during the year next following. (5) The Chairperson shall present the budget estimate to the Municipality on such date, not being later than 31st January in each year, as may be fixed by the Executive Committee and it shall be passed by the Muncipality prior to 15th February of every year. (6) The budget estimate shall be prepared, presented and adopted in such form and in such manner, and shall provide for such matters, as may be prescribed. (7) The annual inventory prepared under sub-section (1) of section 74 and the statement prepared under sub-section (1) of section 150 shall be enclosed with the budget estimate.