Amendment status not verified — confirm the current text below against the official source.
(1) The State Government may, from time to time, give grants Financial assistance or financial assistance to a Municipality with or without direction as to from the the manner in which the sum shall be applied. State Government. (2) The State Government may also lay down a pattern for distribu- tion of such grants or assistance which may include the conditions of release of grants and classification of municipalities for the purpose. 9 of 1914. 72. (1) Subject to the provisions of the Local Authorities Loans Loans. Act, 1914, the Municipality may, with the prior permission of the State Government, obtain loan from any public financial institu- tion or any nationalised bank or such other lending institution as the State Government may approve in this behalf, and the State Government may, if it considers so necessary, stand as the guarantor for payment. 243 Power to incur expenditure beyond the limits of a municipa- lity. The West Bengal Municipal Act, 1993. [West Ben. Act (Part 111—Finance.—Chapter VIL—Municipal Fund.—Section 73.— Chapter V111.—Municipal Property.—Sections 74, 75.) (2) The State Government may advance from the public funds or stand as guarantor for funds from any financial institution on the security of the Municipal Fund and, in the case of a joint scheme, on the security of the Municipal Fund and the fund of other local authorities, if any, to provide for the cost of installation or maintenance relating to any project or scheme for civic services and such advance shall be recoverable under the Local Authorities Loans Act, 1914 and the rules made 9 of 1914. thereunder. (3) The State Government may require the Municipality to observe such financial discipline in the matter of debt servicing, including creation of a sinking fund, as the State Government may think fit and proper and, in doing so, the State Government may prescribe different sets of rules for observance by different groups of Municipalities.