(i)Assignment of funds to Panchayat. - For such purposes and subject to such conditions and limits as the State Government may consider proper, the State Government may assign to any Gram Panchayat, Panchayat Samiti and Zila Parishad such taxes, tolls and fees as levied and collected by the State Government, and may give grants out of the consolidated fund of the State.(ii)Use of Panchayat Fund -(a)Subject to the provisions of this Act and the rules made thereunder, all the properties vested in the Panchayat and the Panchayat Fund shall be used for the purposes of this Act or for other purposes appertaining to activities related to general development of a Panchayat or for such other expenses as the State Government may, either on petition of a Panchayat or otherwise, approve in public interest. The Panchayat Fund shall be kept in the nearest Government Treasury or Sub treasury or Post Office or Nationalised Bank or Scheduled Bank or Regional Gramin Bank or its Branch;(b)The amount allotted to a Panchayat by the State Government or any other person or local Authority for any specific work or purpose shall be used barely for the same work or purpose and as per such instructions as the State Government may issue generally or especially in this behalf;(c)In the case of Gram Panchayat, Panchayat Samiti or Zila Parishad, all the amount shall be withdrawn for the purpose of providing for a major work plan in accordance with only the annual budget with the exclusive prior approval of the Gram Panchayat, Panchayat Samiti or Zila Parishad, as the case may be;Provided that information about all receipts into the Panchayat Fund and all withdrawals from the Panchayat Fund shall be placed before the Panchayat in its next meeting.
