Basic tax grant. - (1) The government shall pay annually, as recommended by the

Finance Commission, to each Panchayat at the village level in the State a grant, which shall be equal as nearly as may be three by eight, of the amount of basic tax collected by the Government in the last preceding year from that panchayat area.

1. (2) The Government may, after considering the area, population, available financial resources and the requirement for development, etc., of the village panchayats and the expense for administration of panchayats, also provide an amount 146 147 148 149 as nearly as may be three by eighth that may be prescribed by Government in proportion to the balance amount already collected by Government as basic tax from the entire land of the state for the preceding year, as grant for the village panchayats of the State. 149[(3) The Government shall, for every year provide, as nearly as may be equal to three by tenth of the amount of basic tax as collected from the district panchayat area in the just previous year, as grant for the Block Panchayats of the Districts; (4)The Government shall, for every year, provide to every district panchayat an amount as nearly as may be one by fifth of the basic tax collected from the concerned district panchayat area for the just previous year, as grant.]