Amendment status not verified — confirm the current text below against the official source.
(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 Government to contribute towards the cost of such Directorate of Local Self Government as the 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 ; (c) thirdly, such sum as may be required to meet the establishment charges and the salary, allowances, provident fund and gratuity of the member as of the municipal services and other municipal employees including such subscriptions and contributions as may be prescribed or determined by the Government : Provided that the total expenditure on establishment shall not exceed one-third of the total expenditure of the municipality ; (d) fourthly, such sum as may be required to pay the expenses incurred in auditing the accounts of the municipality ; (e) fifthly, such portion of the cost of any public expenditure by the Central Government or the *State Government as may be held by the * [State Government] to be equitably payable by the municipality, in return for services rendered to it ; (f) sixthly, such sums as may be due to the Government in respect of the cost of services rendered by it to the municipality and for the maintenance of water works, drainage, sewerage, roads, etc. by it on behalf of the municipality : Provided that an amount allotted to the municipality by the Central or * [State Government] or any other person or local authority for any specified work or purpose shall be utilised exclusively for such work or purpose and in accordance with such instructions as the Government may either generally or specially issue in this behalf. (2) Subject to the charges specified in sub-section (1) and to such rules as the Government may make with respect to the priority to be given to the several duties of the municipality, the municipal fund shall be applicable to the payment in whole or in part, of the charges and expenses incidental to the following matters within the municipal area and with the sanction of the Government outside the municipal area, namely :–– (a) the construction, maintenance, improvement, cleansing and repair of all public streets, bridges, town-walls, town-gates, embankments, drains, privies, latrines, urinals, tanks and water-courses and the preparation of compost manure ; (b) the watering and lighting of such streets or any of them ; (c) the construction, establishment of institutions for the promotion or for the benefit of public health, rest houses, saraies/poor houses, markets, stalls, encamping grounds and works of public utility and the control and administration of public institutions of any of these descriptions ; (d) grants-in-aid to schools, hospitals, dispensaries, poor-houses, leper-asylums and other educational or charitable institutions ; (e) the supply, storage and preservation from pollution of water for the use of men or animals ; (f) the planting and preservation of trees, and the establishment and maintenance of public parks and gardens ; (g) the taking of vital statistics including the registration of births and deaths, public vaccination and any sanitary measure ; (h) the holding of fairs and industrial exhibitions ; (i) the preparation and maintenance of a record of rights in immovable property ; (j) all acts and things which are likely to promote the safety, health, welfare or convenience of the inhabitants, or expenditure whereon may be declared by the municipality with the sanction of the * [State Government] to be an appropriate charge on the municipal fund ; and (k) purposes specified in sections 47 and 48 and for all other purposes for which, by or under this Act or any other law for the time being in force powers are conferred or duties are imposed upon a municipality : Provided that no expenditure shall be incurred out of the municipal fund unless provision therefor has been made in the budget of municipality or funds are obtained by re-appropriation duly approved except in such cases as may be prescribed. (3) Notwithstanding anything contained in the foregoing sub-sections, no charges or expenses shall be paid from the municipal fund incidental to any matter which has been specifically declared so by the Government by general or special order to be a matter in regard to which expenditure shall not be met from the municipal fund. (4) Subject to the provisions of this Act and the rules and bye-laws, it shall be the duty of the President and of any member presiding at any meeting of the municipality or its committee to disallow the consideration or discussion of any matter for which provision is not made in this section or any other section.