(2)The Panchayat Fund shall also be utilized for the following purposes:-(i)[ payment of salaries and allowances to the Sarpanch, Deputy Sarpanch, elected and co-opted members of the Panchayat, or members of any committee thereof and the staff of the Panchayat, subject to such rules as may be prescribed] [Substituted by the Amendment Act 20 of 2002 and thereafter by the Amendment Act 26 of 2003.].(ii)any amount falling due on any loan raised by the Panchayat;(iii)with the previous sanction of the Chief Executive Officer, for any other purpose for which the application of such property or fund is necessary in public interest:Provided that any amount granted to the Panchayat by the Government or any person or local authority for any specific work or purpose shall be applied exclusively for such work or purpose and in accordance with such instructions as the Government may specify, either generally or specially in this behalf.
