Budget estimatesState · Delhi

Section 112 of The Delhi Municipal Corporation Act, 1957

If the whole or arty part of any budget-grant included in the budget estimates for a year remains unexpended at the close of that year, and the amount thereof has not been taken into account in the opening balance entered in the budget estimates of any of the next two following years, the Standing Committee 1 *** may sanction the expenditure of such budget-grant or the unexpended portion thereof during the next two following years for the completion of the purpose or object for which the budget-grant was originally made and not for any other purpose or object.

Summary

This provision allows unspent budget money to be carried forward for up to two years to finish a specific project.
The unexpended budget grant must not have already been counted in the opening balance of the next budget years.
The Standing Committee must sanction the use of these leftover funds.
The carried-forward money can only be used for the exact purpose it was originally granted for, and nothing else.

Practical examples

1A budget grant for building a new community centre is not fully spent by the end of the year due to construction delays. The Standing Committee sanctions the remaining funds to be used next year solely to finish the centre.

2A department has unspent funds meant for buying computers. They ask to use the money next year to buy office furniture instead. This is rejected because the funds must be used for their original purpose.

FAQ

1. What happens to unspent budget money under Section 112 of The Delhi Municipal Corporation Act, 1957?

Under Section 112 of The Delhi Municipal Corporation Act, 1957, unexpended budget grants can be used in the next two following years to complete the original purpose, provided the Standing Committee sanctions it.

2. Who approves the use of leftover budget funds under Section 112 of the Delhi municipal law?

According to Section 112 of the Delhi municipal law, the Standing Committee must sanction the expenditure of unexpended budget grants.

3. Can unspent money from one project be used for a different project under Section 112 of the Act?

No, Section 112 of The Delhi Municipal Corporation Act, 1957 strictly requires that the unexpended portion only be used for the completion of the object for which it was originally made.

Test yourself

Q1.According to Section 112 of the Act, how long can an unexpended budget grant be kept available to finish a project?

Q2.Under Section 112 of the municipal law, what is a strict condition for using unexpended budget grants?

Q3.Which authority has the power to sanction the use of an unexpended budget grant under Section 112 of the Act?

Q4.What accounting condition must be met before Section 112 of the Act allows unspent funds to be used in subsequent years?

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