Chapter VII Chapter VII

Education funds of local authorities

In this Chapter, the expression “local authority” does not include a gram panchayat.

1. (1) There shall be constituted for each local authority an education fund, to which shall be credited,—
   • (a) an annual contribution from the general funds of such local authority not being less than a minimum fixed by the Government in that behalf;
   • (b) all sums granted to such local authority by the Government for the purpose of providing educational facilities within its jurisdiction;
   • (c) all fines and penalties levied within the jurisdiction of such local authority under the provisions of this Act;
   • (d) all income derived from any endowment or other property owned or managed by such local authority tor the benefit of education;
   • (e) all tution fees, if any, collected in educational institutions managed by such local authority;
   • (f) all other sums of money which may be contributed to or received by, such local authority for the purposes of this Act.
2. (2) Notwithstanding anything in any other law for the time being in force, the education fund constituted under this section shall be kept separately and shall not be merged with the general revenues of the local authority concerned and it shall be used exclusively for purposes of education.

1. (1) The education fund constituted under section 35 shall be deposited in Government treasury.
2. (2) All expenses incurred on education by the local authority concerned shall be paid out of the said fund.
3. (3) All orders or cheques to be drawn upon the fund shall be signed by the chief executive officer of the local authority or by such person as he may authorise in writing to sign on his behalf.
4. (4) So far as the funds to the credit of the local authority concerned permit, the treasury shall pay—
   • (a) all orders or cheques signed in accordance with sub-section (3);
   • (b) all payments made or expenses incuifed by the Government on behalf of the local authority by or under the provisions of this Act, provided that the local authority has given previous permission in writing to the treasury to debit such expenses to the fund without the issue of any order or cheque.

1. (1) Any municipal council may, with the previous sanction of the Government and shall, if so directed by them, levy within its jurisdiction, taxes for the purposes of this Act, at such rates as may be considered necessary, as an addition to the taxation levied in the municipality under the Andhra Pradesh Municipalities Act, 1965, under the head of property tax or profession tax or under both these heads. Explanation.—In construing the expression “taxation levied” occurring in this sub-section, exemptions granted under sub-section (2), sub-section (3), sub-section
2. (4) or sub-section
3. (5) of section 88 of the Andhra Pradesh Municipalities Act, 1965, shall not be taken into account.
4. (2) Any gram panchayat may, with the previous sanction of the Government and shall, if so directed by them, levy within the area under its jurisdiction or part thereof, taxes for the purposes of this Act, at such rates as may be considered necessary, as an addition to the taxation levied in such area or part under the law for the time being in force governing gram panchayats under all or any of the following heads, namely, land cess or local cess, profession tax and house tax.

1. (1) The rates of levy of any tax under section 37 shall be determined—
   • (a) by the municipal council or gram panchayat with the previous sanction of the Government, in case the tax is levied by it of its own motion; and
   • (b) by the Government, in case the tax is levied at their direction: Provided that rates of any such tax levied as addition to the taxation under the head of profession tax, shall be subject to the limits specified in any law for the time being in force governing the municipalities or gram panchayats, as the case may be, or prescribed by rules made under this Act: Provided further that the rates of any such tax levied by municipal council or gram panchayat as an addition to the taxation under the head of property tax shall not exceed five percentum per annum in this case of properties taxed on their annual rental value, one fourth per centum per annum in the case of properties taxed on their capital value and four rupees per annum for every three hundred square meters or part therof in the case of properties taxed on their extent: Provided also that the rates of any such tax levied by a gram panchayat as an addition to the taxation under the head of land cess or local cess shall not exceed thirty seven paise in the rupee of the annual rental value of the land.
2. (2) The municipal council or gram panchayat may, with the previous sanction of the Government, and shall if so directed by than, alter the rates of levy of any such tax.

1. (1) Every tax levied in any area under any head of taxation mentioned in section 37 shall be deemed to an addition to a tax levied under the same head in such area under the law for the time being in force governing the municipalities or gram panchayats, as the case may be, and all the provisions of such law relating to the incidence, assessment or realisation of such tax or in any manner connected therewith shall be applicable accordingly: Provided that the Government may direct that the said provisions shall apply subject to such modifications and restrictions, as may be presented.
2. (2) In particular, any such tax levied in any area within the jurisdiction of a gram panchayat under any head of taxation, other than land cess or local cess shall be realised by such authority as may be prescribed as an addition to a tax levied under the same head under the law for the time being in force governing gram panchayats. Out of the proceeds of the tax so realised, such percentage as may be prescribed shall be deducted towards the collection charges and the balance shall be paid by such authority into the Government treasury.

1. (1) On or before the prescribed date, every local authority for which an education fund has been constituted under section 35 shall submit to the Government through the Director in suoh form as may be prescribed a budget for the ensuing financial year showing the income and expenditure relating to such fund.
2. (2) The Government may pass such orders as they think fit in respect of the budget and the local authority concerned shall carry out such orders.

The accounts of the education fund of each local authority shall be examined and audited by such officer as may be appointed by the Government and the local authority concerned shall carry out any instructions which the Government may issue on the audit report.