(1)The Government may, subject to such conditions as it deems fit, make grants to a Panchayat or a Zilla Panchayat for general purposes or for improvement of the area within its jurisdiction and welfare of the residents therein:[Provided that no grants shall be made to a Panchayat which fails to cause its accounts to be so audited for more than three consecutive years] [Inserted by the Amendment Act 43 of 2001.].(2)The Government may sanction such loans as may be prescribed to the Panchayat or a Zilla Panchayat for taking up such Scheme, as may be prescribed within its jurisdiction.
