Panchayati Raj Institution Fund

(a) Contributions and grants, if any, made by the Central or the State Government including such part of the land revenue collected in the State as may be determined by the Government.

(b) Share of taxes or other revenues as approved by the State Finance Commmission;

(c) Contribution and grants, if any, made by any local authority;

(d) Loan, if any, granted by the Central or the State Government or raised by the Panchayati Raj Institution concerned;

(e) All receipts on account of tolls, taxes and fees levied by the concerned Panchayati Raj Institution;

(f) All receipts in respect of any school, hospitals, dispensaries, building institution or works vested in, constructed by or placed under the control and management of the concerned Panchayati Raj Institution;

(g) All sums received as gift or contribution and all income from any trust or endowment made in favour of the concerned Panchayati Raj Institution;

(h) All fines or penalties imposed and realised under the provisions of this Act or of the bye-laws, made thereunder; and

(i) All other sums received by or on behalf of the concerned Panchayati Raj Institution.

(2) Every Panchayati Raj Institution shall set apart and apply annually such sums as may be required to meet the cost of its own administration including the payment of salary, allowances, provident fund and gratuity to the officers and employees. The total expenditure on establishment shall not exceed thirty per cent of the total expenditure of the concerned Panchayati Raj Institution:

Provided that repayment of loans shall be provided for the Panchayati Raj Institution concerned in its Annual Budget estimates:

Provided further that the ceiling of thirty per cent expenditure on establishment may be relaxed by the State Government in specific schemes or programmes.

(3) A Panchayati Raj Institution shall have power to spend such sums as it thinks fit for carrying out the purposes of this Act and may determine the amount of imprest to be kept to defray current expenses.

(4) The Panchayati Raj Institution fund shall be vested in the concerned Panchayati Raj Institution and the balance of the credit of the fund shall be kept in personal deposit account in the nearest Treasury/Sub-Treasury, Post Office or branch of any Scheduled Bank.

(5) Subject to such general control as the Panchayat Samiti or Zila Parishad may exercise from time to time, all orders and cheques for payments from the Panchayat Samiti Fund or Zila Parishad Fund, shall be signed by the Vikas Adhikari or Chief Executive Officer respectively and in this absence by an officer authorised by the Panchayat Samiti or Zila Parishad.

Provided that all such orders and cheques of Panchayat Samiti or Zila Parishad for an amount exceeding Rs. 20,000/- shall be countersigned by the Pradhan or Pramukh, as the case may be and, in the case of a Panchayat, all withdrawals will be with joint signatures or Sarpanch and Secretary.