(1) MI moneys credited to the Municipal Fund from time to time shall be applied for payment of all sums, charges and costs necessary for carrying out the purposes of this Act and the rules and the regulations made thereunder or for payment of all sums payable out of the Municipal Fund under any other law for the time being in force.
(2) No payment of any sum shall normally be made out of the Municipal Fund unless such expenditure is covered by a current budget grant and a sufficient balance of such budget grant is available for the purpose.
(3) Whenever any sum is paid for the purposes not covered by the budget grant, the matter shall forthwith be communicated to the Chairmanin-Council who shall take such action under the provisions of this Act as may appear to it to be feasible and expedient for covering the amount of such payments.
70. Notwithstanding anything contained elsewhere in this Act, the State Government may require a Municipality to earmark a particular portion of the Municipal Fund or a particular grant or a part thereof, or any item of receipt under any head or any percentage thereof, or any share of tax receivable by the Municipality under any other law for the time being in force or any part thereof, to be utilised exclusively for any specified purpose, and it shall be mandatory on the part of the Municipality to follow the same. The State Government may also formulate separate sets of rules for observance by different groups of municipalities in this regard.
Application of Municipal Fund.
Exclusive use of fund for a particular purpose.