Amendment status not verified — confirm the current text below against the official source.
Application of fund. -(1) The municipality shall set apart and apply out of the municipal fund - (a) firstly, such sum as may be required for the payment of any amount falling due on any loan legally contracted by it ; (b) secondly, such sum as the municipality may be required by the State Government to contribute towards the cost of such Directorate of Local Self Government as the State Government may establish for the purpose of advising, assisting and supervising the work of municipalities and other local bodies : Provided that such sum shall not exceed an amount equal to one per centum of the income for the financial year preceding the year, in which the municipality is called upon to make the contribution; ______