(1) There will be a Resource Estimation and Budget Limit Determination Committee as follows to determine the budget limit and the plan for the balanced distribution of the internal income, the amount received from revenue distribution, grants, loans and other income in the municipality and municipality:-
(a) Chairman or Head – Convenor
(b) Vice-Chairman or Deputy-Chairman
(c) Among the members of the Executive Committee, four persons appointed by the President or the Chief to represent women, Dalits or minorities - members
(d) Chief Administrative Officer – Member Secretary (2) When appointing members in accordance with clause (c) of sub-section (1), the chairman or chief shall also appoint members other than the political party to which he belongs. However, the provision of this sub-section will not be applicable in the event that other political parties are not represented in the executive.
(3) The work, duties and rights of the committee under sub-section (1) shall be as follows:-
(a) Projecting internal income, income from revenue distribution, financial transfer received from Government of Nepal and provincial government, internal debt and other income,
(b) To determine the blueprint for the balanced distribution of the projected resources and means, keeping in mind the national and regional priorities and local needs,
(c) Determining the total budget limit based on resource estimates for the next fiscal year,
(d) Determining the limits of the subject area budget,
(e) Determine the basis for prioritizing the budget and programs based on the guidance received from the Government of Nepal and the provincial government, the local economic situation, and the internal income situation,
(f) To set guidelines related to subject area budget formulation,
(G) To perform other tasks according to the needs and decisions of the local level in relation to resource estimation and budget limit determination.
(4) Related employees and subject experts may be invited to the meeting of the committee as per sub-section (1) as required.
(5) The procedure related to the meeting of the committee as per sub-section (1) shall be as determined by the said committee itself.
(6) The committee under sub-section (1).Your work should be completed by the 10th of Baisakh every year and when projecting the budget, you should also do it for two additional years after the next financial year.
(7) The chief administrative officer shall provide the budget limit for the next financial year prepared in accordance with sub-section (1) to the relevant division, branch and ward committee of the municipality or municipality within the fifteenth day of Baisakh each year.
(8) Within the limits of the budget received according to sub-section (7), the subject division, branch and ward committee shall formulate the plan, project, program and estimated budget of the rural municipality or municipality and submit it to the executive.