Priority of payments out of Grama Fund

(1) Except as otherwise provided in this Act the Grama Panchayat shall set apart and apply annually out of the Grama Fund– (a) firstly, such sum as may be required for repayment of and the payment of interest on any loan; (b) secondly, liabilities and obligations arising from a trust legally imposed upon or accepted by the Grama Sasan; (c) thirdly, such sum as may be required to provide for payment towards salaries, allowances and meeting of other expenditure relating to the establishment of the Grama Sasan; (d) fourthly, such sum as may be required for the maintenance of services as may have been undertaken by the Grama Sasan; and (e) fifthly, subject to such exemptions as the State Government may from time to time direct, all expenses, if any, incurred by the State Government in the preparation of electoral rolls the Publication of nominations and result of elections, holding of elections and in matters ancillary or incidental thereto, excluding travelling allowance of Officers of the State Government. (2) Notwithstanding anything to the contrary contained in this Act moneys received by way of loan, gift, contribution of grants from source whatsoever for any specific object shall not be expended on any other object.