Panchayat:Repo18/Law Manual Page0246

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(3) In respect of loans given by the Government under this section the provisions of the Kerala Local Authorities Loans Act, 1963, (30 of 1963) and the rules made thereunder shall apply.

[196 A. Annual Report on Grants.- (1) The State Chief Secretary shall, immediately after each financial year submit an annual report to the Governor in respect of the amount of annual grant as due to the Panchayats under any law or otherwise and the amount actually paid to the Panchayats and the criterion adopted by the Government for such payment.

(2) The annual report under sub-section (1) shall be laid before the Legislative Assembly within the first six months of the next financial year.]

197. Power of Panchayat to raise loan.- [(1) A Panchayat may borrow any sums of money which may be required for the purposes for which the funds of the Panchayat may be applied under the provisions of this Act or any other law in force:

[Provided that while raising such loan the assets of the Panchayat shall not be pledged for purposes other than for utilising in remunerative development schemes.]

[(2.) The District Panchayat may issue Revenue Bonds and the net proceeds received from facilities and services created utilising such bond may be offered as security for such bonds.

(3) Government may give direction to make good any short fall in escrow accounts from the grants due to the District Panchayat by them.]

198. Power of Panchayat to collect fixed fees.- [(1)] A Panchayat may collect such fees from the beneficiaries of the institutions which are run or financed wholly or partially by it at such rates 40 [as fixed by it] subject to the rules made by the Government for the purpose.

(2) Service charges at the rate fixed by the Panchayat may be collected from the beneficiaries utilising the toilet facilities, parking facilities or any other amenities or services provided by it.

(3) The amount collected as service charge shall be utilised for the up keep and maintenance of such facilities and services.

199. Surcharge on tax on direction by the Government.— (1) The Government may, by order published in the Gazette, direct any Village Panchayat to levy from the whole Panchayat area a surcharge not exceeding five per cent on the tax leviable under this Act by that Panchayat at such rate and with effect from such date (not being earlier than first day of the half year immediately following that in which the order is published) as may be specified in the order, to cover any expenses to be incurred by the District Panchayat and Block Panchayats in respect of any plan, project or work.

(2) Any surcharge levied under this section shall be demanded and collected by the

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