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196. Grants and loans for schemes and projects

  1. The Government may make such further grants and loans to the Panchayats as they consider necessary for the execution of specific, schemes projects, programmes or plans relating to any of the matters administered by the Panchayats under such terms and conditions as may be fixed by the Government in this behalf.
  2. Every Panchayat shall utilise such grants or loans under this section only for the specific purposes for which such grants or loans are given.
  3. In respect of loans given by the Government under this section the provisions of the Kerala Local Authorities Loans Act, 1963 (30 of 1963) and the rules made there under shall apply.