Fund established under section 222.

1. (1) There shall be established by the State Government a fund to be called the State Equalisation Fund, which shall consist of the payments made into it under clause
   • (b) of sub-section (2) of section 219 and which shall be utilised for making special grants to backward districts so as to minimise the social and economic inequalities between the districts of the State.
2. (2) The fund established under sub-section (7) shall be non-lapsable.
3. (3) Special grants out of the said fund to district panchayats shall be made in accordance with the rules made in that behalf. 221. (1) In each district, there shall be established by the district panchayat, a fund to be called the District Equalisation Fund consisting of the payments made into it under sub- clause (a) of clause (ii) of sub-section (3) of section 219 which shall be utilised by the district panchayat for making special grants to the backward panchayats subordinate to it so as to minimise the social and economic inequalities between the panchayats in the district. Provision by the State Government for making grants to panchayats. Extent of grants out of the average of three year’s collection of land revenue. State Equilisation Fund. District Eduilisation Fund.

1993 : Guj. 18] Gujarat Panchayats Act, 1993. 85

1. (2) The fund established under sub-section (1), shall be non-lapsable and shall be invested in the prescribed manner.
2. (3) Special grants out of the said fund, shall be made in accordance with the rules made in that behalf.

222. (1) In each district, there shall be established by the district panchayat a fund to be

called the District Village Encouragement Fund which shall consist of the payments made into it under sub-clause (b) of clause (ii) of sub-section (3) of section 219 and which shall be utilised by the district panchayat for making incentive grants to village panchayats to encourage them to raise their income by levying taxes and fees leviable by them under this Act.

1. (2) The fund established under sub-section (1), shall be non-lapsable and shall be invested in the prescribed manner. [ 1[* * * *] 223. (1) In each district, there shall be established a fund to be called the District Development Fund which shall consist of the contributions made by the village panchayats under section 115.
2. (2) The fund shall vest in the district panchayat and shall be invested in the prescribed manner.
3. (3) The fund shall be utilised for granting loans to village panchayats in accordance with the rules and for payment of interest on contributions made by the said panchayats.
4. (4) The State Government shall make rules prescribing the purposes for which loans may be granted, the terms and conditions (including the rate of interest and of penal interest) which such loans may be made, the period therefor and all matters incidental to the grant of loans.