Amendment status not verified — confirm the current text below against the official source.
(1) The purposes to which a panchayat fund may be applied include all objects authorised by this Act, the rules made thereunder and by other laws and in general everything necessary for or conducive to the safety, health, education, convenience, comfort and welfare of the inhabitants of the panchayat area concerned and everything incidental to the administration of the panchayat; and the funds shall be applicable thereto within the panchayat area subject to this Act, the rules framed thereunder [x x] and shall be applicable thereto outside the panchayat area if the expenditure is specially sanctioned by the Government. (2) (a) It shall be the duty of every panchayat to provide for the payment of,- (i) any amount falling due on any loans contracted by it; (ii) the election expenses including the cost of preparation of the electoral rolls and conduct of elections; (iii) the salaries and allowances and the pensions, pensionary contributions, gratuity and provident fund contributions of its officers and employees and the allowances to the President, Vice-President and members which may be due; (iv) sum due under any decree or order of a court; (v) any other expenses rendered obligatory by or under this Act or any other law; and (vi) amount of fees for audit. (b) The Government shall determine the amount of the election expenses referred to in sub-clause (ii) of clause (a) and their determination shall be final and binding on the panchayat. Such amount shall have priority over all other charges except for the service of authorised loans including the loans and advances referred to in section 217. (3) A panchayat may contribute any fund for the defence of India. (4) A panchayat may by resolution supported by not less than one half of its strength, sanction the payment of- (i) a contribution towards the expenses of any Panchayat conference or association of Panchayats; or (ii) any contribution towards the expenses of reception of important personages or the expenses of any public exhibition, ceremony or entertainments-- [or meet the expenses in connection with any matter not specified in the Act or the Rules made thereunder; Provided that the total annual expenses under this sub-section shall not exceed the limit prescribed by the Government.] [x x x x] The words "and such general or special orders as the Government may issue; " omitted by Act 13 of 1999, w.e.f. 24/03/1999. Inserted by Act 13 of 1999, w.e.f. 24/03/1999. Sub-section (5) omitted by Act 13 of 1999, w.e.f. 24/03/1999.