(a) The cost of its own administration including the payment of salary, allowances, provided fund and gratuity to the officers and employees and to the Secretary: Provided that the total expenditure on establishment shall not exceed one- third of the total expenditure, of the Gram Panchayat in any year.

(b) Every Gram Panchayat shall have the power to spend such sums as it thinks fit for carrying out the purpose of this Act;

(c) The Gram Panchayat Fund shall be vested in the Gram Panchayat and the balance to the credit of the Fund shall be kept in such custody as may be prescribed.