42. Contribution by [State] Government. - [(1) If a scheme submitted by an authorised municipality is sanctioned under section 28, the State Government shall bear the additional recurring and non-recurring annual cost of the scheme as estimated by the municipality to the following extent, namely -
(a)sixty per cent of the cost, if the population of the authorized municipality is less than fifty thousand, and(b)fifty per cent, of the cost, in any other case:Provided that where such scheme is sanctioned after the commencement of the Bombay Primary Education (Gujarat Amendment) Act, 1963, (Gujarat 42 of 1963), the extent of the cost to be borne by the State Government shall, for the first year of the scheme, be eighty per cent, in the case of a municipality to which clause (a) applies and seventy-five per cent, in the case of municipality to which clause (b) applies and for the next three years it shall be gradually reduced to the amount permissible under clause (a) or clause (b), as the case may be, by such percentage as the State Government may by order determine:Provided further that in the case of a municipality which immediately before the 1st April, 1963 was liable under sub-section (2) of section 41 to pay contribution to a district school board or authorized municipality, the cost to be borne by the State Government under the aforesaid proviso shall, having regard to contribution so payable, be reduced by such amount as the State Government may by order ldetermine.](2)Nothing in this Section shall affect the claim of any authorised municipality to any annual grant which at the time of this Act comes into force is being paid to it as a local authority under the Bombay Primary Education Act, 1923 (Bombay IV of 1923), by the [State] Government for the purposes of primary education:Provided that, if the [State] Government considers that the Primary education fund of an authorised municipality has been or is about to be misused or misapplied, it may call upon such authorised municipality for an explanation of such misuse or misapplication; and if not satisfied with the explanation given may make such reduction in the grants payable to such authorised municipality as it may deem proper.(3)The [State] Government shall pay to a district school board a grant equivalent to the amount by which expenditure in accordance with the budget sanctioned under the next following section exceeds the receipt referred to in clauses (b) to (d) and (g) of subsection (2) of section 44.
