Section 32 of The Road Transport Corporations Act, 1950
Budget.
- (1)Every Corporation shall, by such date in each year as may be prescribed, prepare and submit to the State Government for approval a budget for next financial year showing the estimated receipts and expenditure during that financial year in such form as may be prescribed.
- (2)Subject to the provisions of sub-sections (3) and (4), no sum shall be expended by or on behalf of a Corporation unless the expenditure of the same is covered by a current budget grant approved by the State Government.
- (3)1[Subject to such conditions and restrictions as may be specified in this behalf by the State Government, a Corporation may sanction] any re-appropriation within the grant from one head of the expenditure to another or from a provision made for one scheme to that in respect of another, subject to the condition that the aggregate budget grant is not exceeded.
- (4)A Corporation may, within such limits and subject to such conditions as may be prescribed, incur expenditure in excess of the limit provided in the budget approved by the State Government under any head of expenditure or in connection with any particular scheme.
Summary
- The corporation must create a plan each year showing how much money it expects to receive and spend.
- This budget must be sent to the State Government for approval by a specific date.
- The corporation generally cannot spend money unless it is already included in an approved budget plan.
- Shifting money from one project to another is allowed as long as the total spending doesn't go up.
- The corporation can spend more than the budget only if it follows special rules and limits set by the government.
Practical examples
FAQ
1. Who must approve the annual budget under Section 32 of the Road Transport Corporations Act, 1950?
Under Section 32 of the Road Transport Corporations Act, 1950, the State Government must approve the annual budget.
2. Can a corporation spend money not in the budget under the Road Transport Corporations Act?
Generally no, Section 32 of the Road Transport Corporations Act, 1950, says no sum shall be expended unless covered by an approved budget grant.
3. What is re-appropriation under Section 32 of the Road Transport Corporations Act, 1950?
Re-appropriation is shifting money from one head of expenditure to another without exceeding the total budget grant, which is allowed under Section 32 of the Road Transport Corporations Act, 1950.
4. Is there any way to exceed the budget limit under the Road Transport Corporations Act?
Yes, Section 32 of the Road Transport Corporations Act, 1950, allows incurring expenditure in excess of budget limits within prescribed conditions.
Test yourself
1.Under Section 32 of the Road Transport Corporations Act, 1950, a budget must show estimated receipts and what else?
2.What happens if a corporation wants to move money between different budget categories under Section 32 of the Road Transport Corporations Act, 1950?
3.According to Section 32 of the Road Transport Corporations Act, 1950, what is required for any expenditure to be valid?
4.Can a corporation ever spend more than the approved budget limit under Section 32 of the Road Transport Corporations Act, 1950?