(1) For the purposes of section 218, the State Government shall in each year

detennine a sum which shall be equal to the average of the land revenue collected or recovered during the three preceding revenue years in the State.

1. (2) Out of the sum determined under sub-section (1) an amount equal to-
   • (a) such percentage of the sum as may be prescribed shall be set apart for meeting the expenditure on the salaries of the secretaries of village panchayats and of the village accountants (talatis) in the State and on their training;
   • (b) five per cent. of the sum shall be paid into the State Equalisation Fund established under section 220: Provided that in the case of a village panchayat of a Devasthan village the land revenue in respect of which is wholly or partially alienated in favour of the Devasthan, the village panchayat shall be paid in each year out of the State Equalisation Fund a sum on the same basis as applicable to other villages under sub-section (3).
2. (3) Out of the balance remaining after making the provisions in accordance with sub-section (2)
   • (i) an amount equal to-
   • (a) 50 per cent. of the balance shall be distributed among the village panchayats;
   • (b) 25 per cent. of the balance shall be distributed among the taluka panchayats; and
   • (c) 10 per cent. of the balance shall be distributed among the district panchayats in proportion to the average collection and recovery of land revenue from the respective village, taluka or, as the case may be, district panchayat in the three revenue years immediately preceding;
     • (ii) an amount equal to-
   • (a) 7½ per cent. of the balance shall be paid into the District Equalisation Fund established under section 221.
   • (b) 7½ per cent. of the balance shall be paid into the District Gram Encouragement Fund established under section 222.