(1) There shall be three types of library funds in the State:—
(a) The State Library Fund.
(b) The District Library Fund.
(c) The City or Town or Block or Village Library Fund.
(2) There shall be credited into the State Library Fund—
(a) the amount provided by the State Government for development, improvement and maintenance of library service in the State;
(b) the contribution received from the Central Government;
(c) any special grant that the Central or a State Government may make for any specific purposes:
City and Town Library Committees.
Block Library Committee.
Panchayat Library Committee.
Employees of the Public Library.
Public Library Fund.
[1989 : Hr. Act 20PUBLIC LIBRARIES 133
(d) the amount received under the library rules of the State Central Library;
(e) any amount received as gift, contribution or endowment for the development of Public Libraries in the State.
(3) There shall be credited into a District Library Fund—
(a) the amount transferred to it from the State Library Fund, the State contribution to the District Library Fund being in no case less than the total amount of library cess collected in the district;
(b) any special grant that the Authority may make to the District Library Committee for any specific purpose;
(c) the amount collected under the rules of the District Library;
(d) any amount received as gift, contribution or endowment for the development of libraries in the district;
(e) any loan that the District Library Committee may raise.
(4) There shall be credited into a City, Town, Block or village Library fund –
(a) the amount raised as library cess within the limits of the city, town, block or village;
(b) any special grant that the District Library Committee may make for any purpose;
(c) the amount collected under the Town or Block Library rules;
(d) any amount received as gift, contribution or endowment for the development of libraries in the city, town, block or village;
(e) any loan that a city Library Committee may raise.
20. Every local body in a district may levy in its area a library cess in the form of a surcharge on property tax and house tax at such rate as the Government may decide from time to time.