Panchayat:Repo18/Law Manual Page0283

(10) The Panchayat shall constitute a special fund on the discretion of the Panchayat from the donations and contributions which are collected locally for meeting the expenses to be incurred by the President as per the powers delegated to the President by the Panchayat and its constitution and utilisation to be according to the bye-laws made by the Panchayat for this.]

213. Items of expenditure debitable to panchayat fund. - (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 65[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,no

(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. D (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;