(1)The purposes to which the funds of the Panchayat Union Council or of the Village Panchayat may be applied include all objects expressly declared obligatory or discretionary by this Act or any Rules made thereunder or by any other laws or Rules and the funds shall be applicable thereto within the Panchayat Development Block or the Panchayat Village, as the case may be, subject to such rules or special orders as the Government may prescribe or issue and shall, subject as aforesaid, be applicable to such purposes outside the Panchayat Development Block or Panchayat Village if the expenditure is authorized by this Act or specially sanctioned by the Inspector.