A Panchayat. may borrow money from Government of India or State Government or from other sources with the sanction ofState Government for any ofthe purposes mentioned under Section 49 to Section 53 ofthe Act or any other purpose forwhich the State Government may. by special or general order. direct to the panchayat under the Act or for constructing properties for raising income of panchayat: .
Providing that a Panchayat shall not borrow money for any of the followingpurposes unless the project or construction work to be carried out is either within the local limits of the area subject to the control of the Panchayat or for the benefit of the inhabitants within those limits. namely:-
(i)Carrying out of any work or project which is legally authorised to carrj out;
(ii)th~ giving of relief and the establishment and maintenance of relief - worksjn.tirhe.of famine or scarcity; --- '., -.- --... -:----,---,--.--..,.....--..--...-- .-----..---
(iii) the prevention of the outbreak or spread of any dangerous epidemic disease; .
(iv)the carrying out any meast:.res which may be connected with or ancillary to any of the purposes specified in the sub-rules (ti)and (iii).
(v) the making of any exceptional expenditure of an urgent and unforeseen character not already provided for in this rule. .