Section 86(3) in The Punjab Panchayati Raj Act, 1994
(3)Every Gram Panchayat shall set apart and apply annually such sum as may be required to meet -(a)the cost of its own administration including the payment of salary, allowances, provident fund and gratuity to the officers and employees and to the secretary:Provided that the total expenditure on establishment shall not exceed one-third of the total expenditure of the Gram Panchayat in any year;(b)every Gram Panchayat shall have the power to spend such sums as it thinks fit for carrying out the purposes of this Act;(c)the Gram Panchayat Fund shall be vested in the Gram Panchayat and the balance to the credit of the Fund shall be kept deposited with a Scheduled Bank.
