Amendment status not verified — confirm the current text below against the official source.
In the Principal Act, after section 39,the following new sections shall be inserted, namely:- "39 A. Transfer of Funds to the Panchayat :- The State Government shall release funds to the Panchayats in such a manner that these institutions get adequate time to use the allocation during the year itself. The fund release could be in the form of equally spaced installments. It could be done in two installments, one at the beginning of the financial year and the other by the end of September of that year. 39 B. Grants and Shares of Taxes.- (1) The State Government shall having regard to the recommendation, if any, of the Finance Commission, in each year, after due appropriation made by. the State Legislature by law in this behalf, make such grants and shares of various taxes, duties, cess and fees as are necessary to the Panchayats for the proper discharge of their functions under this Act. (2) The shares of taxes collected by the State Government shall be distributed among Panchayats at all levels in an equitable manner according to the formula fixed by the State Government to this effect".