Government to make good and deficiency in compensation

In the territories specified in sub-section (1) of section 3 of the State Re-organisation Act, 1956, (Central Act 37 of 1956), if the amount payable to any local authority under section 13 falls short of the actual amount of tax realised by such authority during the year ending with the 31st March 1957, after deducting the collection charges, the State Government shall make good such deficiency. The State Government shall determine the amount if any, which should be paid to local authorities under sub-section (1) and their determination shall be final. Act No.12 of 1958 has added this Section w.e.f. 1-10-1958.