Section 53(1) in The Himachal Pradesh Municipal Corporation Act, 1994
(1)The municipality shall set apart and apply out of the municipal fund -(a)firstly, such sum as may be required for the payment of any amount falling due on any loan legally contracted by it ;(b)secondly, such sum as the municipality may be required by the State Government to contribute towards the cost of such Directorate of Local Self Government as the State Government may establish for the purpose of advising, assisting and supervising the work of municipalities and other local bodies :Provided that such sum shall not exceed an amount equal to one per centum of the income for the financial year preceding the year, in which the municipality is called upon to make the contribution;(c)thirdly, such sum as may be required to meet the establishment charges and the salary, allowances, provident fund and gratuity of the members of the municipal services and other municipal employees including such subscriptions and contributions as are referred to in the Himachal Pradesh Municipal Services Act, 1994 (11 of 1994):Provided that the total expenditure on establishment shall not exceed one third of the total expenditure of the municipality.(d)fourthly, such sum as may be required to pay the expenses incurred in auditing the accounts of the municipality, and such portion of the cost of any public expenditure by the Central Government or the State Government as may be held by the State Government to be equitably payable by the municipality, in return for services rendered to it ;(e)fifthly, such sum as the municipality may be required by the State Government to contribute towards the maintenance of pauper lunatic or pauper lepers sent from any place in the State to mental hospitals or public asylums whether in or outside the State ;(f)sixthly, such sums as may be due to the State Government in respect of the cost of services rendered by it to the municipality and for the maintenance of water works drainage, sewerage, roads, etc. by it on behalf of the municipality :Provided that an amount allotted to the municipality by the Central or State Government or any other person or local authority for any specified work or purpose shall be utilised exclusively for such work or purpose and in accordance with such instructions as the State Government may either generally or specially issue in this behalf.
