Amendment status not verified — confirm the current text below against the official source.
If the expenditure incurred by the Government or by any other Municipality or Panchayat in the State for any purpose authorised by or under this Act such as to benefit the residents of a Municipality, the Municipality may, make a contribution towards such expenditure: Provided that before incurring such expenditure, the Municipality which is liable, to pay the contribution, shall be consulted and convinced that if the said purpose is served it will benefit the residents of that Municipality.] Section 296 substituted by Act 14 of 1999, w.e.f. 24-3-1999. Prior to the substitution Section 296 read as under: "296. Contribution to expenditure.- If the expenditure incurred by the Government or by any other Municipality or Panchayat in the State for any purpose authorised by or under this Act such as to benefit the inhabitants of a Municipality, the Municipality may, with the sanction of the Government, and shall if so directed by them, make a contribution towards such expenditure."