(1)Expenses from the Devolution Account-(i)The amount shall be paid monthly from the Devolution Account after increasing 10% to the amount to be received by the urban bodies in the base year 2000-2001 or the percentage of the actual net income whichever is less;(ii)If any urban body resolves or consents to decrease its regular grant and to include it as a share for infrastructure development then available amount shall be transferred into the infrastructure account;(iii)If any urban body gives its consent to reduce its amount of regular grant for the repayment of its debts to Financial Institutions or the fulfilment of its liabilities to Government then the equivalent amount shall be transferred into the Repayment Account and this system shall remain continued every year till the repayment of the debts.(2)Expenses from the Infrastructure Account.-After transfer into the repayment account of the total deposits in the beginning of the year for the repayment of liabilities of Financial Institutions and State Government, the payment shall be made out of the remaining amount in balance for the improvement of civic amenities and schemes of development of cities to be undertaken or for the new schemes sanctioned through financial institutions for which amount is to be provided. The amount shall be spent from this account mainly for the following development works :-(i)Work relating to road including repairs thereof;(ii)Necessary amount for the drinking water schemes shall include the contribution to be made available by the urban local bodies;(iii)Improvement of fire services;(iv)For any specific purposes e.g., improvement of slum area and environment or other urban schemes;(v)Management of garbage/waste;(vi)Improvement of basic amenities of Urban Local Bodies.(3)Expenses from Repayment Account-(i)For repayment of arrears of debts taken from Government which shall include repayment of interest and penal interest,(ii)For the repayment of such debts and interest, penal interest and guarantee fee thereon provided by Financial Institutions/banks which are required to he paid directly by the Government with the permission of such bodies,(iii)For the repayment of dues/liabilities of Government Department/Undertakings/Boards which such body is unable to pay off.(iv)For the payment of such amount of contribution towards pension fund of employees of urban bodies which the urban body cannot pay.
