Constitution of the municipal fund.

1[192-A. Finance Commission. – (1) The Finance Commission constituted under section 129-A of the Puducherry Village and Commune Panchayats Act, 1973, (Act No. 10 of 1973) shall also review the financial position of the municipal councils and make recommendations to the Administrator as to –

Inserted vide Act No. 11 of 1999, section 3, w.e.f 05-07-1999.

The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11,dated 17th January, 1974.

¹ Inserted by Act 4 of 1994, section 16 w.e.f. 23-4-1994.

1. (a) the principles which should govern --
   • (i) the distribution between the Union territory and the municipal councils of the net proceeds of the taxes, duties, tolls and fees leviable by the Union territory, which may be divided between them and the allocation between the municipal councils of their respective shares of such proceeds;
   • (ii) the determination of the taxes, duties, tolls and fees which may be assigned to, or appropriated by, the municipal councils; and
   • (iii) the grants-in-aid to the municipal councils from the Consolidated Fund of the Union territory of Puducherry;
2. (b) the measures needed to improve the financial position of the municipal councils; and
3. (c) any other matter referred to the Finance Commission by the Administrator in the interests of sound finance of the municipal councils.

1. (2) The Administrator shall cause every recommendation made by the Commission under this section together with an explanatory memorandum as to the action taken thereon to be laid before the Legislative Assembly of the Union territory].

1. (1) Save as otherwise provided in this Act: --
   • (a) all moneys received by or on behalf of the municipality under the provisions of this Act or of any other law for the time being in force, or under any contract;
   • (b) all proceeds of the disposal of property by, or on behalf of, the municipality;
   • (c) all rents accruing from any property of the municipality;
   • (d) all moneys raised by any tax, rate or cess, levied for the purposes of this Act;
   • (e) all fees collected and all fines levied under this Act or under any rules, regulation or bye-law made thereunder; The section came into force on the 26th day of January, 1974 vide Extraordinary Gazette No. 11, dated 17th January, 1974.
   • (f) all moneys received by or on behalf of the municipality from the Government or any individual or association of individuals by way of grant or gift or deposit;
   • (g) all interests and profits arising from any investment of, or from any transaction in connection with any money belonging to the municipality, including loans advanced under this Act; and
   • (h) all moneys received by or on behalf of the municipality from any other source whatsoever; shall form one fund to be entitled the municipal fund (hereinafter in this Act referred to as “the municipal fund”).
2. (2) The municipal fund shall be held by the municipality in trust for the purposes of this Act.