The money flow
panchayats Finalise all plans, proposals and cost estimates. Planning begins in October. Proposals are sent to the state government before the state budget is finalised in March.
state government Gives broad guidelines on expenditure. Stresses on productive sectors like agriculture and irrigation in rural areas and more on the social sectors like slum development and infrastructure in urban areas. Makes it compulsory to spend 10 per cent of the budget on projects related to women's issues.
state budget As 40 per cent of its outlay is earmarked for the panchayat s, it represents the budgets prepared by local bodies. After the legislative assembly sanctions it, the money is given to the local bodies.
execution
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