(1)Subject to the provisions of this Act and rules made thereunder and such general or special orders of the Government, all property owned by, or vested in the Panchayat under this Act and all funds received by it and all sums accruing to it under the provisions of this Act or any other law for the time being in force, shall be applied for the purposes for which by or under this Act, or any other law for the time being in force, powers are conferred or duties are imposed upon the Panchayat:Provided that no expenditure shall be incurred out of the Panchayat fund unless provisions therefore has been made in the budget of the Panchayat or funds are obtained by reappropriation duly approved except in such cases as may be prescribed.(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.
