Contribution by State Government

(1) Where a scheme submitted by an authorized municipality is sanctioned under section 28, the State Government shall bear the additional recurring and non-recurring annual cost of the scheme as estimated by the municipality to the following extent, namely :- (a) sixty per cent, of the cost, if the population of the authorized (1) (b) fifty percent, of the cost, in any other case: Provided that where such scheme is sanctioned after the commencement of the Bombay Primary Education (Gujarat Amendement) Act, 1963, the extent of the cost to be borne by the State Government shall, for the first year of the scheme, be eighty per cent. in the case of a municipality to which clause (a) applies and seventy-five per cent. in the case of municipality to which clause (6) applies and for the next three years it shall be gradually reduced to the amount permissible under clause (a) or clause (b), as the case may be, by such percentage as the State Government may by order determine: Provided further that in the case of a municipality which immediately before the let April, 1963 was liable under sub-section (2) of section 41 to pay contribution to a district school board or authorized municipality, the cost to be borne by the State Government under the aforesaid proviso shall, having regard to contribution so payable, be reduced by such amount as the State Government may by order determine. (2) Nothing in this section shall affect the claim of any authorized municipality to any annual grant which at the time this Act comes into force is being paid to it as a local authority under the Bombay Primary Education Act, 1923, by the State Government for the purpose of primary education: Provided that, if the State Government considers that the Primary education fund of any authorized municipality has been or is about to be misused or misapplied, it may call upon such authorized municipality for an explanation of such misuse or misapplication; and if not satisfied with the explanation given may make such reduction in the grants payable to such authorized municipality as it may deem proper. (3) The State Government shall pay to a district school board a grant equivalent to the amount by which expenditure in accordance with the budget sanctioned under the next following section exceeds the receipts referred to in clauses (b) to (d) and (g) of sub-section (2) of section 44.