Amendment status not verified — confirm the current text below against the official source.
Restriction on the application of moneys received for certain purposes :– Notwithstanding anything contained in Section 117,– (1) all moneys collected, received or recovered by the municipality whether as taxes, fines or otherwise or for the execution of works for or in any respect relating to– (i) the water-supply, (ii) the lighting system, (iii) the cleansing of private and public latrines, urinals and cesspools and the provision and maintenance-of public latrines and urinals, and 62 THE ORISSA MUNICIPAL MANUAL (iv) the drainage or sewerage system, shall after deduction of such proportionate share of the cost of collection and supervision as the municipality may fix be applied in defraying the expenses respectively– (a) of making , extending or maintaining the water-supply, (b) of making, extending or maintaining the lighting system, (c) of cleaning private and public latrines, urinals and cesspools and of providing, extending or maintaining public latrines and urinals and (d) or making, extending or maintaining the drainage or sewerage system, and in repaying or paying interest on debts incurred in connection with the said purposes respectively: Provided that in any area in which a sewerage system has been established under Chapter XIV and a drainage tax has been imposed, all moneys referred to in clause (1) relating to sub-clauses (iii) and (iv) shall be applied to the objects described in sub-clauses (c) and (d). (2) money with has been received by the municipality for any specific object shall not be expended on any other object. 1[120-A. Review of finance :– (1) It shall be the duty of the Finance Commission to review the financial position of Municipalities and to make recommendations to the Governor as to– (a) the principles which would govern- (i) the distribution between the State and the Municipalities of the net proceeds of the taxes, duties, tolls and fees leviable by the State, which may be divided between them and the allocation between the Municipalities at all levels of their respective shares of such proceeds; (ii) the determination of the taxes, duties, tolls and fees which may be assigned to , or appropriated by , the Municipalities; and (iii) the grants-in-aid to the Municipalities from the Consolidated Fund of the State; (b) the measures needed to improve the financial position of the Municipalities; and (c) any other matter referred to the Finance Commission by the Governor in the interests of sound finance of the Municipalities. (2) The Governor shall cause every recommendation made by the Finance Commission under sub-section (1) together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly.] ––––––––