(1)There shall be a [Gaon Fund for each Gram Panchayat] [Substituted by U.P. Act No. 9 of 1994.] and the same shall, subject to the provisions of the annual estimate of income and expenditure passed under Section 41, be utilised for carrying out the duties or obligations imposed upon the [Gram Sabha] [Substituted by U.P. Act No. 9 of 1994.] or the [Gram Panchayat] [Substituted by U.P. Act No. 9 of 1994.] or any committee thereof by this or any other enactment:Provided that such amount upto the total of all sums credited to the Gaon Fund under the Uttar Pradesh Zamindari Abolition and Land Reforms Act, 1950, minus the amount credited to the Consolidated Gaon Fund under Section 125-A of that Act as may be required by the Bhumi Prabandhak Samiti for being utilised in carrying out its duties or obligations shall be made available out of Gaon Fund to the Bhumi Prabandhak Samiti every year:Provided further that in the event of any difference between the Bhumi Prabandhak Samiti on the one hand and the [Gram Panchayat] [Substituted by U.P. Act No. 9 of 1994.] or [Gram Sabha] [Substituted by U.P. Act No. 9 of 1994.] on the other about the requirements of funds by the Bhumi Prabandhak Samiti the matter shall be referred by the Pradhan to the prescribed authority whose decision shall be binding.(2)The following shall be credited to the Gaon Fund:(a)The proceeds of any tax imposed under this Act.(b)All sums handed over by the State Government to the [Gram Panchayat] [Substituted by U.P. Act No. 9 of 1994.],(c)The balance, if any, standing to the credit of the village Panchayat previously in existence under the Village Panchayat Act.(d)All sums ordered by a Court [or required under any law] [Added by U.P. Act No. 33 of 1961.] to be placed to the credit of the Gaon Fund.(e)All sums received under Section 104.(f)The sale proceeds of all dust, dirt, dung or refuse including the dead bodies of animals collected by the servants of the [Gram Panchayat] [Substituted by U.P. Act No. 9 of 1994.].(g)Such portion of th6 rent or other proceeds of nazul property as the State Government may direct to be placed to the credit of the Gaon Fund.(h)Sums contributed to the Gaon Fund by any [Zila Panchayat] [Substituted by U.P. Act No. 9 of 1994.] or other local authority.(i)All sums received by way of loan or gift.(j)Such other sums as may be assigned to the Gaon Fund by any special or general order of the State Government.(k)All sums received by the [Gram Panchayat] [Substituted by U.P. Act No. 9 of 1994.] from any individual or corporation or the State Government under Section 24 or any other law.(l)[ All sums received by way of grants-in-aid from the Consolidated Fund of the State.] [Inserted by U.P. Act No. 9 of 1994.](3)Nothing in this Act shall affect any obligation of a [Gram Panchayat] [Substituted by U.P. Act No. 21 of 1995.] arising from a trust legally imposed upon or accepted by it.(4)[ All withdrawal of moneys from the Gaon Fund and disbursement thereof shall be made jointly by the Pradhan and the Secretary of the Gram Panchayat.] [Inserted by U.P. Act No. 33 of 1999.][32A. Finance Commission. - (1) The Governor shall, as soon as may be, within one year from the commencement of the Constitution (Seventy-third Amendment) Act, 1992 and thereafter at the expiration of every fifth year, constitute a Finance Commission to review the financial position of the Gram Panchayat, Kshettra Panchayat and Zila Panchayat and to make recommendations to the Governor as to -(a)the principles which should govern -(i)the distribution between the State and the Gram Panchayats, Kshettra Panchayats and Zila Panchayats of the net proceeds of the taxes, duties, tolls and fees leviable by the State which may be divided between them and the allocation between the Gram Panchayats, Kshettra Panchayats and Zila Panchayats of their respective shares of such proceeds;(ii)the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by the Gram Panchayats, Kshettra Panchayats and Zila Panchayats;(iii)the grants-in-aid to the Gram Panchayats, Kshettra Panchayats and Zila Panchayats;(b)the measures needed to improve the financial position of the Gram Panchayats, Kshettra Panchayats and Zila Panchayats.(c)any other matter referred to the Finance Commission by the Governor in the interest of sound finance of the Gram Panchayats, Kshettra Panchayats and Zila Panchayats.(2)The Finance Commission shall consist of a Chairman and two members who shall possess such qualifications and shall be selected in such manner as may be prescribed.(3)The Finance Commission shall determine their procedure.(4)The Chairman or a member of the Finance Commission may resign his office by writing under his hand addressed to the Governor but shall continue in his office till the resignation is accepted.(5)A casual vacancy in the office of the Chairman or a member of the Finance Commission may be filled for the remainder of the period of his predecessor.(6)The Finance commission shall have the following powers for the performance of its functions, namely, -(a)call for any record from any officer or authority;(b)summon any person to give evidence or produce a record; and(c)such other powers as may be prescribed.(7)The Governor shall cause every recommendation made by the Finance Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before both the Houses of the State Legislature.] [Inserted by U.P. Act No. 9 of 1994.]
